Forex
GBP Weakens as Elevated US Yields Outweigh BoE Hawkish Tone
The British Pound (GBP) has weakened to near 1.3250 against the US Dollar (USD) due to elevated US yields, which outweighed the hawkish tone from the Bank of England (BoE) policymakers.
US Treasury yields remain above 5% at multi-decade highs, supporting the USD against the GBP. The rise in long-end Treasury yields also underpins the Greenback and creates a headwind for the major pair.
Marc Chandler, chief market strategist at Bannockburn Forex, noted that oil prices jumped after the US rejected an Iranian offer, pushing upward pressure on US yields and lifting the dollar more broadly.