GBP/USD Forecast Today -09/01: British Pound Falls (Video)

  • It’s worth noting that the British pound has pierced the 1.2350 level.
  • Breaking down below there is a very negative turn of events, but we have held on to that order to show signs of resiliency.
  • Ten-year yields in America continue to spike, and that, of course, continues to drive the value of the U.S. dollar higher.

With that being the case, and the fact that the United States is the only place you’re seeing, like, along the lines of a strong economy when it comes to the majors, it makes sense that the U.S. dollar continues to be the only game in town.

Selling Short Term Rallies

Short-term rallies I think are selling opportunities and it’s worth noting that the previous daily candlestick was a shooting star and not only the British pound against the US dollar but the Australian dollar, the New Zealand dollar, etc. Now, I do think if the yields drop a bit, then it’s likely that we could bounce a little bit from here but I think that the 1.25 level offers resistance.

Keep in mind that we have a jobs number on Friday, and that of course has a major influence on what happens with the US dollar. But right now, the bond market is in control, and nobody cares what the Fed thinks. As long as that’s going to be the case, the US dollar is going to move right along with the 10 year yields and other markets. If we continue to see yields rise, people want dollars, it’s that simple. Think of it this way, most debt in the world is denominated in dollars and you have to pay back quickly. If you can, that requires dollars. Furthermore, why take an asset that’s depreciating against the dollar when you can just flip it for dollars? So, it’s kind of a feedback circle.

Ready to trade our daily GBP/USD Forex analysisWe’ve made this UK forex brokers list for you to check out. 

Related Posts

© Reuters

Forex flows were light into payrolls data, BofA says, highlights positions at risk By Investing.com

Có thể bạn quan tâm US Indices: Has the Bullish Trend Broken? S&P500 Price Nears 5,868; Geopolitical Tensions and Economic Concerns In Play USD/JPY Outlook: Markets Anxious…

Forex Markets React to Speculation on Trump’s Economic Policies

Forex Markets React to Speculation on Trump’s Economic Policies

Có thể bạn quan tâm Forex Signals Brief December 20: Can PCE Inflaiton Surprise to the Upside? Forex Today – 24/12: Stock Markets Gaining Before Christmas Forex…

EUR/AUD taps out, Wall Street could throw the ASX a lifeline (for now)

EUR/AUD taps out, Wall Street could throw the ASX a lifeline (for now)

Có thể bạn quan tâm AUD/USD Forecast: Aussie Bounces Back as Dollar Bulls Fade EUR/USD Stuck in Range Despite Stronger Bullish Bias Markets Took Aim at UK…

Dollar softens slightly amid gradual tariff pledge

Dollar softens slightly amid gradual tariff pledge

Có thể bạn quan tâm EUR/USD Analysis Today 31/12: Ends 2024 Weak (Chart) Canadian Dollar Eyes GDP – Action Forex EUR/USD Forecast Today 27/12: Faces Resistance (Video)…

GBP/USD Forex Signal Today 14/01: Bullish Rebound (graph)

GBP/USD Forex Signal Today 14/01: Bullish Rebound (Chart)

Có thể bạn quan tâm Mexican Peso Retreats Amid Donald Trump Concerns Canada’s Minority Government on the Brink of Collapse China Enforces Stricter Crypto Forex Rules as…

GBP/USD Price Analysis: Sterling Steady Ahead of US Inflation

GBP/USD Price Analysis: Sterling Steady Ahead of US Inflation

Có thể bạn quan tâm Canada’s Minority Government on the Brink of Collapse The Mexican Peso Closes Lower Against the Dollar EUR/USD Signal Today – 19/12: Fed-BoE…

Leave a Reply

Your email address will not be published. Required fields are marked *