18 May 2015
GBP/USD trades flat
FXStreet (Mumbai) - The bid tone on the US dollar has been strong in the Asian session, despite which, the GBP/USD pair has managed to stay largely unchanged on the day at 1.5720.
Pound vulnerable to losses in Gilt yield
The British Pound, like the single currency, has been supported by the rout in the bond markets, which pushed the benchmark 10-year UK gilt yield higher to 2.07% within a month. However, the 10-year yield rally appears to have exhausted, especially after the BOE revised its growth and inflation forecasts lower in its quarterly inflation report.
Given the thin economic calendar in the UK and US, the markets are likely to track the movement in the UK-US benchmark bond yield spread.
GBP/USD Technical Levels
The immediate support is seen at 1.57, under which the pair could drop to 1.5650. On the flip side, a break above 1.5738 (5-DMA), could send the pair higher to 1.5790.
Pound vulnerable to losses in Gilt yield
The British Pound, like the single currency, has been supported by the rout in the bond markets, which pushed the benchmark 10-year UK gilt yield higher to 2.07% within a month. However, the 10-year yield rally appears to have exhausted, especially after the BOE revised its growth and inflation forecasts lower in its quarterly inflation report.
Given the thin economic calendar in the UK and US, the markets are likely to track the movement in the UK-US benchmark bond yield spread.
GBP/USD Technical Levels
The immediate support is seen at 1.57, under which the pair could drop to 1.5650. On the flip side, a break above 1.5738 (5-DMA), could send the pair higher to 1.5790.