GBP/USD reaches a multi-day high in the 1.3365-70 range.
Forex news for 30 November 2021 :
During the early European session, the GBP/USD pair grabbed fresh bids and rocketed to the 1.3365-70 level, or a near one-week high, in the previous hour.
Following a brief consolidation in the first half of Tuesday’s trade, the GBP/USD pair regained positive traction and is now trying to build on its recent comeback from a YTD low. The increase was solely sponsored by the strongly offered tone around the US dollar, which was pulled down by a sharp decrease in US Treasury bond yields.
The discovery of a novel and possibly vaccine-resistant coronavirus type – Omicron – seems to have crushed market expectations for the Fed to tighten policy sooner rather than later. This, combined with the global flight to safety, pulled the yield on the benchmark 10-year US government bond to a three-week low, about 1.45 % , undermining the greenback.
Meanwhile, concerns about the possible economic consequences of the new coronavirus variant’s spread weighed on global risk sentiment. This was obvious from a selloff in the equities markets, which provided little relief to the safe-haven USD. However, the GBP/USD pair’s gains may be limited by ongoing Brexit-related concerns.
The UK-EU standoff on the Northern Ireland Protocol, as well as the escalating dispute between France and Britain over post-Brexit fishing rights, could act as a headwind for the British pound. As a result, aggressive bullish traders should exercise care before concluding that the GBP/USD pair has produced a near-term bottom at the 1.3280-75 level.
The UK has no key market-moving economic data scheduled for release, however the US economic calendar includes the Chicago PMI and the Conference Board’s Consumer Confidence Index. However, the main attention will be on Fed Chair Jerome Powell’s hearing before the Senate Banking Committee, which could influence the USD and provide some impetus to the GBP/USD pair.
Markets News :
- EUR leads, CAD lags on the day
- European equities lower; S&P 500 futures down 0.8%
- US 10-year yields down 8 bps to 1.45%
- Gold up 0.3% to $1,789.90
- WTI down 2.3% to $68.03
- Bitcoin down 0.5% to $58,911