The GBP/USD pair has pulled back from resistance around 1.3640. The sticky PCE print backed the case for at least one more Federal Reserve rate hike this year and helped the dollar hold onto its overnight gains. In contrast, the US Treasury's government bond buyback strategy is now weighing on longer-dated Treasury yields, while optimism over a potential US-Iran deal and Hormuz reopening is also capping the safe-haven dollar's advance to some extent.
Source: TN Trader
Considering sterling, analysts put the likelihood of a rate hike from the Bank of England this year at around 25%, with a 75% probability that the Bank’s MPC keep interest rates unchanged. So, from a rates perspective, the dollar is currently getting more of a tailwind from rate hike expectations than the British pound.
* The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and, as such, is considered to be a marketing communication.
