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Instrument: GBPUSD
Technical Analysis
Bearish Preference:
A sell position is envisaged if price trades below 1.38222 with a take profit at 1.37647
Bullish Preference:
A buy position is envisaged if price trades above price 1.39773 with take profit at price 1.40402
Fundamentals:
USD: Core PCE Price Index m/m (2:30pm)
G20 Meeting (All Day)
Comment: The dollar climbed higher in early European trading Friday, lifted by a sharp rise in U.S. Treasury yields, while riskier currencies were hit hard amid fears central banks will have to tighten sooner than previously expected.
Government bonds, and particularly U.S. Treasuries, have started to become the focal point of markets globally, as traders now expect inflation to rise aggressively as economies recover on the back of extreme levels of fiscal stimulus and very loose monetary policies. As such, the fact that a Treasury auction on Thursday drew the weakest ratio ever of bids relative to the intended sale volume was the catalyst for a broad collapse in risk sentiment across markets. The yield on the benchmark 10-year U.S. Treasury note briefly crossed the 1.6% level to trade at its highest level in more than a year.
Analysis: SCRUM Team
