29 Jan 2015
GBP/USD turns negative as Gilt yields fall
FXStreet (Mumbai) - The GBP/USD pair fell from a high of 1.5163 to trade negative, tracking losses in the UK gilt yields.
Rate hike path to be more gradual in the UK
The yields came under pressure after the Bank of England governor Mike Carney said yesterday that the liftoff in the interest rates from record lows would be more gradual than earlier expected. He also said that inflation will start to recover after 12 months. Thus, the 10-year Gilt yield declined 3.7 basis points to trade at 1.425%.
Meanwhile, the 10-year treasury yield in the US has recovered from the low of 1.714% to trade at 1.739%; up 1.1 basis points for the day.
GBP/USD Technical Levels
The pair currently trades 0.03% lower at 1.5134. The immediate support is seen at 1.51 levels, under which losses could be extended to 1.5073 levels. On the flip side, a break above 1.5163 shall open doors for a re-test of 1.5220 levels.
Rate hike path to be more gradual in the UK
The yields came under pressure after the Bank of England governor Mike Carney said yesterday that the liftoff in the interest rates from record lows would be more gradual than earlier expected. He also said that inflation will start to recover after 12 months. Thus, the 10-year Gilt yield declined 3.7 basis points to trade at 1.425%.
Meanwhile, the 10-year treasury yield in the US has recovered from the low of 1.714% to trade at 1.739%; up 1.1 basis points for the day.
GBP/USD Technical Levels
The pair currently trades 0.03% lower at 1.5134. The immediate support is seen at 1.51 levels, under which losses could be extended to 1.5073 levels. On the flip side, a break above 1.5163 shall open doors for a re-test of 1.5220 levels.