- GBP/USD continues to trade in positive territory around 1.2150.
- The US dollar remains lower after the University of Michigan Consumer Sentiment Survey.
- The pair remains on track to record weekly gains.
The pair GBP/USD It fell towards 1.2100 during European trading hours but regained its traction amid renewed US dollar (USD) weakness. The pair seems to have stabilized around 1.2150 in the American session and remains on track to end the week in positive territory.
Falling US Yields Weigh on USD
Despite the negative turnaround in risk sentiment, the dollar is having a hard time finding demand heading into the weekend. The 10-year US Treasury yield has fallen almost 5% on the day to around 3.4%, forcing the US Dollar Index (DXY) to remain in the red near 104.00.
Data released by the University of Michigan (UM) revealed Friday that the Consumer Confidence Index fell to 63.4 in early March from 67 in February. More importantly, “one-year inflation expectations receded from 4.1% in February to 3.8%, the lowest reading since April 2021,” said UoM Director of Consumer Surveys Joanne Hsu.
Ahead of next week’s critical Federal Reserve policy meeting, this report appears to be causing investors to reassess their stances. According to CME Group’s FedWatch tool, the probability of a 25 basis point Fed rate hike next week now stands at 68%, down from almost 80% previously.
Technical levels to consider
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
