GBP/USD Exchange Rate Seeks Support Amid Oil Price Volatility and Bond Market Uncertainty
The Pound Sterling (GBP) to US Dollar (USD) exchange rate has regained some ground after finding support near 12-week lows around 1.3200, but it remains vulnerable as markets await further developments in global bond and energy markets.
US yields and expectations of additional Federal Reserve tightening continue to favor the USD, although the recent rally in the US currency is showing signs of losing momentum, according to ANZ, which sees resistance at 1.3300 and 1.3380 with the potential for a slide to the 1.31 area.
The recent oil price increase on Monday, following reports that US President Trump had rejected an offer from Iran to re-open the Strait of Hormuz, has also contributed to the USD's strength, while high yields can support the Pound, but there will be important economic consequences and tensions will inevitably remain high.