- After selling off over recent sessions, the Pound is steading versus the greenback and could move higher.
- GBP’s move lower along with the USD rally appears increasingly like a short-term corrective move
GBP/USD & OTHER PAIRS STABILISE
GBP/USD and other European currencies are stabilising in the European trading session indicating that the decline across recent sessions could be a healthy short-term corrective move within the ongoing uptrend which has been in place since September 23 last year.
The decline and recovery of GBP/USD has been accompanied by similar moves in other currency pairs such as AUD/USD, NZD/USD and USD/CAD.
On the one hand, political chaos in Washington and rising coronavirus infections could drag on the pair, whilst this can be countered with vaccine rollout developments and the expectation of more US fiscal stimulus.
Recently Fed officials have suggested that the US Federal Reserve could soon start tapering its bond buying program later this year: A boost for US treasury yields, the US Dollar whilst a drag for GBP/USD.
That said flows out of Treasuries could have already run its course. Attention will now turn to more Fed officials due to speak.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
