UK Pound Losing Ground Below $1.26 Mark; FOMC Eyed For Further Cues

Published on Feb 20, 2024 11:45

UK pound is seen losing ground against the dollar on Tuesday tracking a bounce back in US benchmark treasury yields and greenback alike. The benchmark 10-year treasury yields are trading above 4.3% whereas dollar index has strengthened its grip further over 104 mark. The dollar index that measures the greenback against a basket of currencies rose to around 104.30 on Tuesday, recouping some losses from recent sessions as investors continued to assess the outlook for Federal Reserve monetary policy. Last week data showed higher than expected US consumer price and producer prices that pushed back expectations of an early Federal rate cut. This week`s focus will be on the Federal Open Market Committee (FOMC) minutes. GBPUSD has given up $1.26 mark attained on Friday and is quoting at $1.2582, down 0.21% on the day. Meanwhile, on the NSE, GBPINR futures are seen descending through the day and trading now at 104.44, down 0.12% on the day.