GBP/USD steadily climbs back closer to mid-1.3100s, lacks follow-through

A positive risk tone undermined the safe-haven USD and extended some support to the major.GBP/USD pair

Having shown some resilience below the 1.3100 round-figure mark, the GBP/USD pair attracted some buying on the first day of a new week and has now reversed the previous day's modest losses. A positive risk tone acted as a headwind for traditional safe-haven assets, including the US dollar, which, in turn, was seen as a key factor that extended support to the major. That said, the uncertainty over Ukraine should keep a lid on any optimistic move in the markets.

Investors seem convinced that the Fed would adopt a more aggressive policy stance to combat stubbornly high inflation and have been pricing in a 100 bps rate hike over the next two meetings. The market bets were reaffirmed by the US monthly jobs report on Friday. This, in turn, pushed the yield on the two-year US government bond - which is highly sensitive to rate hike expectations - to a three-year top and supports prospects for the emergence of some USD dip-buying.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

AUD/USD presses against weekly resistance, bearish for the open, RBA in focusAUD/USD will start out the second quarter's first full week on the back foot following last week's bearish close pertaining to a stronger US dollar an
Source: FXStreetNews - 🏆 14. / 72 Read more »

GBP/USD Price Analysis: Defends the critical daily support line but not for longGBP/USD is reversing a brief dip below 1.3100, although remains almost unchanged on the day, as traders remain cautious ahead of a slew of speeches fr
Source: FXStreetNews - 🏆 14. / 72 Read more »

GBP/USD continues to stick around 1.3100 as investors await BOE Bailey’s speechThe GBP/USD has continued to trade lackluster around 1.3100 amid the absence of a fresh trigger that could dictate a direction in the asset. The cable
Source: FXStreetNews - 🏆 14. / 72 Read more »

NZD/USD retests commitments at 0.6910 in the openNZD/USD is holding near support at 0.6910 in the open, trading down some 0.10% after sliding from 0.6921 at the start of the session. The greenback is
Source: FXStreetNews - 🏆 14. / 72 Read more »

EUR/USD to struggle to establish in the area above 1.11 – CommerzbankIn the absence of the risk of a Europe-specific energy crisis and recession things are looking quite rosy for the European single currency, according
Source: FXStreetNews - 🏆 14. / 72 Read more »

USD/IDR to only move slightly higher in the coming quarters – MUFGUSD/IDR has been relatively range-bound in Q1, hovering mostly around 14,250 to 14,400. In the view of economists at MUFG Bank, the Indonesian rupiah
Source: FXStreetNews - 🏆 14. / 72 Read more »