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  • US dollar rises across the board even amid lower US yields.
  • Pound shows some weakness amid Brexit concerns and negative rate talks.

The GBP/USD dropped further and bottomed at 1.2959, reaching the lowest level since Friday. It then bounced to the upside, being unable to recover the 1.3000 zone. As of writing, it trades at 1.2975, down almost 90 pips for the day, ending a four-day winning streak.

A stronger US Dollar across the board and particularly against European majors pushed cable to the downside. The DXY is up 0.45%, hovering around 93.50, having the best day in weeks. The greenback is higher even as Wall Street posts mixed results and amid lower US yields.

The pound is also falling versus the euro but at a modest pace. Ahead of the European Union summit, the focus continues to be on Brexit talks. Expectations about a deal have been supporting the pound over the last sessions, but the deadline is approaching, and they are still negotiating.

Bank of England officials have been speaking at the Parliament. Governor Bailey mentioned they need to consider introducing negative interest rates and added that they are not there yet on the decision. His comments had no impact on the pound as expectations on negative rates were already priced in.

Technical levels