The 10-year yield drops on Thursday, perhaps offering a bit of relief for many assets around the world.
GBP/USD is rising towards 1.35, its highest level since April 9, following a hawkish hold from the Federal Reserve and ahead of the Bank of England interest rate decision today.
GBP/USD Price Forecast: Remains sticky around 20-day EMA in countdown to BoE's policy
Pound Sterling Price News and Forecast: GBP/USD bulls seem hesitant amid the Fed's hawkish tilt
Looking at the 4-hour chart, the pair declined toward the 38.2% Fib retracement level of the upward move from the 1.3177 swing low to the 1.3599 high. However, it is still stable above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The impact from the ECB and BoE monetary policy decisions later today may prove fleeting if it runs counter to what's happening in energy markets, with both EUR/USD and GBP/USD effectively trading as proxies for crude right now rather than rate differentials.
GBP/USD treading water as BoE and US PCE collide in 90-minute window: who wins?
The Pound to Australian Dollar (GBP/AUD) exchange rate edged higher on Wednesday as softer-than-expected Australian inflation prompted some profit-taking in the ‘Aussie'. At the time of writing, GBP/AUD was trading around AU$1.8854, up roughly 0.2% on the day.
The Pound to Dollar (GBP/USD) exchange rate edged lower on Wednesday as concerns over prolonged disruption to Middle East energy supplies supported the US Dollar. At the time of writing, GBP/USD was trading around $1.3491, down close to 0.2% on the day.
GBP/USD falls as Fed holds rates steady, Powell to stay at Fed
DXY holds near 98.70 on Iran tensions and inflation surge. Will EUR/USD and GBP/USD break key levels or lose momentum ahead of Fed signals?