A weaker US dollar and remarks made over the weekend by the new Chancellor of the Exchequer, Jeremy Hunt, that suggested proposed tax cuts would be reconsidered helped the British pound on Monday.
With Prime Minister Liz Truss still facing political pressure and the Bank of England no longer supporting the Gilt market, the coming week for the pound could be challenging.
Through the Asian session to start the week, Treasury rates decreased slightly across the curve. As a result, the US Dollar is weaker globally, with the Australian Dollar currently trading over 0.6230 being the top gainer.
The only currency that has lost ground against the "great dollar" today is the Japanese Yen, as investors are still wary of a potential intervention in the wake of some official browbeating. Just below the 32-year high of 148.86 set on Friday, USD/JPY is currently trading.
Defiantly speaking on a variety of subjects, including modernization, Taiwan, Hong Kong, shared prosperity, the military, the environment, technology, and foreign policy, Chinese President Xi Jinping made his remarks on Sunday.
Any alteration to the financially ruinous Covid-19 zero-case policy was conspicuously absent. Although the Hang Seng and CSI 200 equity indices are down, the reason may be more closely tied to the Wall Street sell-off on Friday. The dismal news causes iron ore to decline.
While futures suggest to a solid start to the North American cash session, the ASX 200 in Australia and the Nikkei 225 in Japan are both down on the day.
With the USD weakening, crude oil and gold have experienced modest gains. Brent has cleared US$ 92 barrel, while the WTI futures contract is above US$ 86 bbl. Spot gold is getting close to $1,650 for an ounce.
After pulling back from resistance levels heading into the weekend, GBP/USD stabilized on Monday. The resistance might stay near the break marks of 1.1405 and 1.1414.
The price has been squaring the 10- and 21-day simple moving averages (SMA), which may indicate short-term directional momentum uncertainty. The fact that all SMAs 55 days and older are above the price may be a sign that the longer-term negative trend is still strong.
The recent lows of 1.0924 and 1.0354 may provide support.
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