GBP/USD up more than a hundred pips on Thursday.The GBP/USD printed a fresh daily high during the American session at 1.1335, boosted by a rebound of the pound following PM Liz Truss’s resignation and a weaker US dollar.
Truss and USD down, risk appetite and GBP up.The greenback is falling across the board as Wall Street posts gains with main indexes up around 1%. The DXY is under 112.30, down by 0.55% even as US yields move rise.
The pound strengthened following the resignation of Liz Truss as Prime Minister after only 45 days. The new PM will emerge from a new leadership election at the Conservative Party next week.Market participants reduced their bets on Bank of England interest rate hikes. They now see a less aggressive BoE. Now attention will turn to the potential successors that could include Rishi Sunak and Boris Johnson.
The GBP/USD ran to 1.1305 initially, following the announcement and more recently printed a fresh daily high at 1.1336, amid a decline of the dollar. It is hovering around 1.1300. EUR/GBP is modestly lower for the day, trading under 0.8700 while GBP/JPY is up approaching 170.00.
GBP/USD approaches 1.1300 as PM Liz Truss resigns
Political turmoil in the UK has kept investors on their toes ever since PM Liz Truss’s mini-budget failed miserably. The government’s collapse is complete as Prime Minister Truss resigned and announced a leadership election. GBP/USD holds on to gains near 1.1300.
EUR/USD eases as USD fights back
EUR/USD trades below 0.9800 following the release of mixed US data. Wall Street surges amid solid earning reports, but Treasury yields are also up, reaching fresh multi-year highs.
Gold bounces towards $1,650 as USD extends decline
Gold stages a modest recovery from over a three-week low touched earlier this Thursday, as the US dollar extends its retreat amid a positive shift in market sentiment. Aggressive Fed rate hike bets and elevated bond yields acted as a headwind for XAU/USD, earlier on.