GBP/USD declined toward 1.2100 during the European trading hours but regained its traction amid renewed US Dollar (USD) weakness. The pair seems to have stabilized at around 1.2150 in the American session and remains on track to end the week in positive territory.
Despite the negative shift witnessed in risk sentiment, the USD is having a difficult time finding demand ahead of the weekend. The benchmark 10-year US Treasury bond yield is down nearly 5% on the day at around 3.4%, forcing the US Dollar Index (DXY) to stay in the red near 104.00.
The data published by the University of Michigan (UoM) revealed on Friday that the Consumer Confidence Index declined to 63.4 in early March from 67 in February. More importantly, "year-ahead inflation expectations receded from 4.1% in February to 3.8%, the lowest reading since April 2021," UoM Surveys of Consumers Director, Joanne Hsu, said.
Ahead of next week's critical Federal Reserve policy meeting, this report seems to be causing investors to reassess their positions. According to the CME Group FedWatch Tool, the probability of a 25 basis points Fed rate hike next week currently stands at 68%, down from nearly 80% earlier in the day.
© 2000-2023. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.