UK Pound Stays Supported As Dollar Retreats

Published on Feb 19, 2024 14:57

UK pound extends gains above $1.26 mark on Monday amid muted dollar overseas. Recent dollar rally on the back of reduced expectation of early rate cut applied brakes following statement from James Bullard, the former St. Louis Fed president Friday that the Federal Reserve should cut interest rates at its next meeting as a preemptive effort to prevent its policy stance from unduly restraining economic activity later this year. US treasury yields were trading lower at 4.28% while dollar index was quoting at 104.13, down 0.05% but still in range of achieving back recent peaks that kept gains in peer currencies limited. GBPUSD was seen quoting at $1.2619, up 0.08%. Limited cues owing to bank holiday in US and no data from UK docket also restricted movements in the currency pair. Moreover, a sharp jump in COT net longs in pound futures, its highest in over 5-months also kept the currency afloat.