GBP resilience could be tested but fundamentals better than they were .

Since the onset of the banking sector turmoil last Thursday, the Pound is the second best performing G10 currency. Economists at MUFG Bank expect GBP to remain resilient.GBP/Risk correlation is weakening

“A turn higher in risk aversion and a pause from the BoE could test the recent resilient performance of the Pound.”

“The correlation between GBP and risk has weakened of late which may reflect some improved fundamentals.”“Improved fiscal credibility, greater political stability and a shrinking current account deficit should all help to limit the fallout for the GBP.”

EUR/USD continues to trade in positive territory above 1.0700

EUR/USD has managed to stay in positive territory above 1.0700 despite having retreated modestly in the early American session. ECB President Lagarde reiterated that inflation in the Eurozone is projected to remain too high for too long, helping the Euro keep its footing.

EUR/USD News

Gold falls below $1,980 as US yields rebound

Gold price has turned south and dropped below $1,980 after having rallied to a fresh multi-month high of $2,010 earlier in the day. The 10-year US Treasury bond yield has turned positive on the day near 3.5% following the sharp decline seen in the European session and weighed on XAU/USD.

Gold News

GBP/USD rises to fresh multi-week highs above 1.2250

GBP/USD has gathered bullish momentum and advanced to its highest level since mid-February above 1.2250 on Monday. The US Dollar struggles to find demand following a mixed opening in Wall Street and allows the pair to cling to its daily gains.