Posted 12/28/2023, 8:01:27 PM
GBP/USD Reverses Gains as Higher US Yields End Risk Rally
- GBP/USD climbed to a 20-week high before falling back on Thursday as dollar flows dominated.
- An unexpected rise in US Treasury yields during a bond auction sparked a reversal of risk rally flows.
- Earlier US data misses boosted risk appetite, but the jump in yields ended the risk bid.
- The yield increase came despite jobless claims and pending home sales missing forecasts.
- Technically, GBP/USD dropped from highs near 1.2830 toward support around the 1.2700 handle.