British Pound gains positive traction as USD remains depressed on softer bond yields
The GBP/USD pair attracts some buyers for the third straight day, trading around mid-1.3200s during the Asians session on Monday, though it remains confined in a familiar range held over the past three weeks or so.
The British Pound (GBP) experienced a surge in buying interest for the third consecutive day, trading near the mid-1.3200 range during the Asian session on Monday. This positive movement is largely attributed to the softening of US bond yields, which have been hovering near multi-year lows, thereby providing support to the GBP/USD pair.
UK Chancellor John Healey's upcoming budget speech on October 28, where he reaffirmed his commitment to fiscal discipline, is another favorable factor bolstering the British Pound. However, traders may choose to wait for Healey's address during the IMF and World Bank annual meetings in Bangkok to gauge its impact on the currency pair.
Additionally, speeches from Bank of England Governor Andrew Bailey and US Federal Reserve Chair Kevin Warsh on Friday will also offer crucial insights. Other crucial data points expected to influence the GBP/USD pair include the monthly UK GDP report and the latest US inflation figures. Geopolitical tensions in the Middle East, primarily due to the US-Iran standoff, could further dampen bearish sentiments towards the US Dollar, providing a buffer for the Greenback and limiting potential losses for traders.
Traders are advised to wait for a decisive breakout above the 1.3260 short-term range and sustained strength above the 1.3300 resistance level before confirming a potential bottom in the currency pair and positioning for further gains.
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