The USD continues to gain strength on the back of rising US Treasury yields and hawkish Fed policy expectations. Meanwhile, the GBP faces downward pressure due to dampened BoE rate hike bets and ongoing political uncertainty in the UK.
Key Takeaways
- 1.The US dollar is strengthening as market participants price in higher Fed rate hike probabilities due to solid US economic data.
- 2.The British Pound is underperforming due to softening UK economic data and reduced expectations for Bank of England rate hikes.
- 3.UK political uncertainty surrounding potential leadership changes in the Labour Party is being met with a muted market reaction.
Table of Contents
- USD continues to trade on a stronger footing
- USD: Higher Us yields continue to drive USD performance amid Us-Iran talks
- GBP: Limited negative spillovers for GBP & gilts from UK political uncertainty
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Lee Hardman
Securities
US 2-Year TreasuryBrent Crude OilUSDNOK
Themes
Monetary Policy DivergencePolitical Risk
Regions
Middle EastUnited StatesUKIran