GBP/USD propped up in pre-open APAC on BoE Bailey weekend comments
GBP/USD is set to open regular forex hours on the bid as indicated by pre-open markets in the Asia Pacific with the pair up over 0.9% into 1.1270s. Cable closed on Friday offered at 1.1177 and down 1.2%. As explained here, BoE Gov Bailey: Stronger rates response needed to fight inflation, GBP/USD back above 1.1230 pre-open, the Bank of England Governor Andrew Baily said on Saturday that inflationary pressures might require a stronger interest rates response from the central bank than it had envisioned in August.
“We will not hesitate to raise interest rates to meet the inflation target,” Bailey said at an event on the sidelines of the International Monetary Fund Meetings in Washington.
GBP/USD faces barricades around 1.1250 as hawkish Fed bets soar
The GBP/USD pair has picked offers in the Tokyo session firmly as the risk-on mood has started fading. The kick-start of the US quarterly earnings season delivered a rebound move in S&P500 on Monday after a bearish Friday but has eased some gains now.
The US dollar index (DXY) has attempted a rebound after dropping below the critical support of 113.00. While the 10-year US Treasury yields are displaying a subdued performance. Robust bets for a 75 basis point (bps) interest rate hike by the Federal Reserve (Fed) have defended the downside bias for yields till now. According to the CME FedWatch tool, the chances for a 75 bps rate hike have climbed to 99.4%.