GBP/USD weakens to near 1.3150 as US Senate reaches deal to extend government funding
The GBP/USD pair loses traction to near 1.3150, snapping the three-day losing streak during the early Asian session on Monday. The US Dollar (USD) strengthens against the Pound Sterling (GBP) amid positive signs that the record-breaking US government shutdown may end. Traders will keep an eye on the speech from the Bank of England (BoE) Clare Lombardelli later on Monday.
Bloomberg reported early Monday that the US government shutdown is nearing an end after a group of centrist Senate Democrats agreed to support a deal to reopen the government and fund some departments and agencies for the next year. Read more…
GBP/USD Weekly Forecast: Pound Sterling struggles as US Dollar strength and risk aversion dominate
The Pound Sterling (GBP) extended its downtrend and reached seven-month lows near 1.3000 against the US Dollar (USD), before GBP/USD buyers quickly jumped in and recovered some ground. Safe-haven flows returned with a bang and acted as a strong headwind to the risk-sensitive Pound Sterling while boosting the US Dollar to its highest in five months against its six major currency rivals.
“Sell everything” theme gripped the market as traders witnessed a wave of exhaustion following the Artificial Intelligence (AI) driven record rally in global stocks. US tech stocks tumbled, drowning the major indices, with investors selling Gold to cover their losses in equity markets. Investors grew concerned over inflated technology stock valuations, particularly in the artificial intelligence (AI) space, fuelling the long-due correction in global indices. Read more…
