The GBP/USD pair broke to the upside after trading in a range during hours between 1.2865 and 1.2830. It climbed to 1.2888, reaching the highest level since Monday. It is trading at 1.2880, consolidating daily gains supported by a weaker US dollar. The greenback lost ground across the board during the American session amid lower US yields.
The 10-year dropped toward 1.80%, moving away from the weekly highs it reached a few days ago. UK retail sales data released today did not affect markets, the same situation applied with US PPI. “Optimism that the US will rollback tariffs on China’s goods faltered somewhat as negotiations continue to face new problems. Nonetheless, some positive steps were taken, after both countries lifted the ban on poultry imports.
Volatility is likely to remain limited ahead of the Asian session. A slide below 1.2860 could point to a return to the previous 1.2830/1.2860 range.
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