Pound Falls Amid Risk Aversion

RTTNews | 882 days ago
Pound Falls Amid Risk Aversion

(RTTNews) - The pound was lower against its most major counterparts in the European session on Friday, as risk sentiment soured due to the prospect of further policy tightening by the U.S. Federal Reserve.

An overnight spike in U.S. Treasury yields raised fears of a looming recession.

Recent comments from a slew of Fed officials suggested that interest rates would keep climbing for some time to cool inflation.

Data from the Office for National Statistics showed that the UK economy avoided a recession in the fourth quarter.

Gross domestic product held steady in the final quarter of 2022, as expected, after shrinking 0.2 percent in the third quarter. The pound dropped to 1.1150 against the franc and 0.8872 against the euro, off its prior highs of 1.1179 and 0.8848, respectively. The pound is seen finding support around 1.105 against the franc and 0.90 against the euro.

The pound fell to a 2-day low of 157.76 against the yen, retreating from an early 4-day high of 159.63. On the downside, 154.00 is possibly seen as its next support level.

In contrast, the pound climbed against the greenback, with the pair trading at 1.2123. Next likely resistance for the currency is seen around the 1.24 level.

Looking ahead, University of Michigan's preliminary U.S. consumer sentiment index for February is due out in the New York session.

read more
Pound Falls As U.K. Economy Contracts For Second Straight Month

Pound Falls As U.K. Economy Contracts For Second Straight Month

The British pound weakened against other major currencies in the European session on Friday, as the UK economy shrank for the second consecutive month in May, adding challenges to Chancellor Rachel Reeves in achieving her self-imposed borrowing rules.
RTTNews | 3h 56min ago
Pound Falls Against Majors

Pound Falls Against Majors

The British pound weakened against other major currencies in the European session on Friday.
RTTNews | 4h 19min ago
Yen Retreats Amid US-Japan Trade Uncertainty

Yen Retreats Amid US-Japan Trade Uncertainty

The Japanese yen retreated from early highs against other major currencies in the European session on Friday, amid concerns on US-Japan relations in light of Trump's placement of a 25 percent tariff on Japanese exports this week, which will go into force on August 1.
RTTNews | 5h 8min ago
Yen Retreats Against Majors

Yen Retreats Against Majors

The Japanese yen weakened against other major currencies in the Asian session on Friday.
RTTNews | 8h 20min ago
Commodity Currencies Rise Amid Renewed Tariff Concerns; USD Slide

Commodity Currencies Rise Amid Renewed Tariff Concerns; USD Slide

The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major counterparts in the early European session on Thursday, as traders are optimistic about an end to the tariff uncertainty after U.S. President Donald Trump made it clear that he will not extend the August 1 deadline for trade deals, though he gets aggressive with tariff imposition. They are also optimistic about a potential trade deal between the U.S. and the European Union.
RTTNews | 1 day ago