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2 Mar 2015
GBP/USD weakens with fall in UK Gilt yields
FXStreet (Mumbai) - The British Pound weakened due to weakness in the UK Gilt yields, taking the GBP/USD down to 1.5378 levels. The pair failed to sustain above 1.54 levels despite the UK manufacturing PMI in February rose to a seven month high.
GBP/USD: Bond yields spread favors USD
The Pound weakened as the yield spread between the UK 10-year yield and the US 10-year yield is in favor of the US dollar. The 10-year Treasury yield in the US is trading 1 basis point higher at 2.012%, while the UK 10-year Gilt yield is down 3.1 basis points to 1.746%. Moreover, the weakness in the Gilt yield contradicts the data released today, that showed manufacturing PMI at 54.1.
The bond yield spread may tilt further in the favor of the USD if the ISM manufacturing index and personal spending and income data in the US beats the market expectations.
GBP/USD Technical Levels
The pair currently trades at 1.5384; down 0.35%. The immediate support is seen at 1.5342 and 1.5318 levels. On the flip side, resistance is seen at 1.5408 and 1.5447 (100-DMA) levels.
GBP/USD: Bond yields spread favors USD
The Pound weakened as the yield spread between the UK 10-year yield and the US 10-year yield is in favor of the US dollar. The 10-year Treasury yield in the US is trading 1 basis point higher at 2.012%, while the UK 10-year Gilt yield is down 3.1 basis points to 1.746%. Moreover, the weakness in the Gilt yield contradicts the data released today, that showed manufacturing PMI at 54.1.
The bond yield spread may tilt further in the favor of the USD if the ISM manufacturing index and personal spending and income data in the US beats the market expectations.
GBP/USD Technical Levels
The pair currently trades at 1.5384; down 0.35%. The immediate support is seen at 1.5342 and 1.5318 levels. On the flip side, resistance is seen at 1.5408 and 1.5447 (100-DMA) levels.