Yield Tends Dominate Sterling Moves, Pound To Dollar Rate Retreats From 2-Month Highs
The dollar recovered strongly on Friday which pushed the Pound to Dollar (GBP/USD) exchange rate to lows around 1.3670 before consolidating around 1.3675 on Monday
Sterling overall held firm with the trade-weighted index close to five-year highs as hedge funds have continued to pare short positions.
The latest COT data reported by the CFTC recorded a further net decline in the short Sterling position to near 29,000 contracts from 39,000 the previous week.
The Pound to Euro (GBP/EUR) exchange rate has consolidated around 1.1970 and below 23-month highs and unable to break above the important 1.2000 level.
Pound Traders Continue to Ignore Politics
The Pound has remained broadly resilient in global currency markets despite further important political stresses surrounding Prime Minister Johnson.
Berenberg economist Holger Schmieding commented; “a conservative successor (of Johnson), for instance,…
