Pound Steady as US Treasury Bond Buybacks Underpin Soft-Dollar
The pound held steady on Friday as the US Treasury's intervention in the bond market continued to underpin a soft-dollar, risk-friendly trading environment.
GBP/USD traded up 0.32% at 1.3672, while EUR/USD gained 0.27% to 1.1709. The week's dominant story remained Wednesday's unscheduled US Treasury announcement that it would increase bond buyback operations.
ING's Global Head of Markets Chris Turner cautioned against over-interpreting the move, saying many commentators treat it as a 'heinous financial crime.'
Turner drew a distinction from April 2025's Liberation Day episode, when policy credibility fears drove safe-haven flows into the franc, euro and yen. Instead, this week's events are 'a soft dollar, pro-risk story if the US Treasury is taking a greater interest in protecting the long end.'