The Pound Sterling climbs against the Greenback on Wednesday as the US Treasury stepped up in the markets to offer liquidity support via a buyback of longer-dated bonds, a day after the US 30-year yield hit its highest level since 2007.
The GBP/USD trades at 1.3610 after bouncing off daily lows of 1.3523
GBP/USD rallies as US Treasury buyback lowers yields before Fed minutes The announcement by the US Treasury Secretary pushed US yields lower, as did the Dollar. The US Dollar Index (DXY), which tracks the performance of the buck’s value against six currencies, is down 0.84% at 98.80, near levels last seen by the end of May. The rise in US yields at the long end of the curve has been driven by higher-than-expected inflation expectations, due to elevated Oil prices stemming from the lack of resolution in the US–Iran conflict.
The US ambassador to Israel said that a large-scale warfare against Iran remains an option. However, he acknowledged that he is working to establish a mechanism with Syria, Israel and Turkey to de-escalate the conflict, reported Al Hadath. In the meantime, traders are bracing for the release of the Federal Reserve’s last meeting minutes.