- Posted by currencies in coronavirus, Dollar, EUR, GBP, Sterling, UK, Uncategorised
- March 1, 2021
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Over the last week we saw the market being to face sell-offs due to concerns about bond prices and yields- what was positive to see was the Sterling reaction. GBPUSD fell under 1.40 (After a rise to 1.42) and GBPEUR managed to hold 1.15 which gives us a good base for the next week- and a good insight into the resilience of Sterling exchange rates currently.
Sterling is backing off again this week against the US dollar after printing the first negative weekly candle last week in nearly two months, despite making a fresh near-three-year high of 1.4242. The sell-off occurred as US Treasury bond yields jumped, boosting the greenback, as investors continued to worry about inflationary pressures further down the line.
Cable is currently trading around 1.3935 and looks likely to re-test 1.3900 soon, although support off the 20-day simple moving average at 1.3930 and last week’s low at 1.3888 should stem any further sell-off.
The Euro plunged lower against the US Dollar at the end of last week, and may continue to lose ground, if the European Central Bank follows through on suggestions that it will act aggressively to counter an unwanted rise in bond yields.