Pound Trades Flat as Dollar Finds Support in Treasuries

The pound traded flat against the dollar on Tuesday as sterling's move was largely driven by broader dollar dynamics rather than any British data or policy news.

According to Francesco Pesole, FX strategist at ING, developed currencies have started the week on a quiet note despite the abundance of headlines.

The dollar continues to take cues from the US bond market, with a good session for the back-end allowing the greenback to find some support.

Pesole noted that trade tensions are an increasing driver of currency moves, especially for the CAD as US-Canada trade tensions keep escalating.