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Sep 06 - 03:55 PM

GBP/USD - Slides Amid UST Yield Rise, Less-Hawkish UK Rate Expectations

By Paul Spirgel  —  Sep 06 - 01:35 PM
  • GBP$ soft into NY close -0.5% at 1.2505; NorAm range 1.2567-1.2484

  • Pair on backfoot after less-hawkish Bailey, Cunliffe, Dhingra comments

  • Sterling dominance falters on questions about UK rate trajectory

  • Higher UST yields add to USD allure; BoE +25bp on Sep 21 now 80% on IRPR

  • GBP$ supt 1.2484 Wed low, 1.2479 23.6% Fib of 1.0327-1.3144, 1.2425 200-DMA

  • Below 200-DMA bears target May 2023 lows just above 1.23

  • Dovish BoE shift puts March 8 2023 low by 1.1805 in focus

  • Res fmr supt at lwr 30d Bolli 1.2540. Wed high 1.2587, falling 10-DMA 1.2610

  • EUR/GBP +0.46% at 0.8576, Wed range 0.8577-30; less hawkish BoE view weighs on GBP

Source:
Refinitiv IFR Research/Market Commentary

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