GBP/USD drops further to 1.3000, remains vulnerable
- Pound among worst performers on Monday, unable to find support.
- GBP/USD down more than 200 pips from Friday’s peak.
The GBP/USD pair dropped further during the American session on the back of a stronger US dollar. The pair bottomed at 1.3001 and remains near the lows, with the bearish tone intact.
A weaker GBP, plus a stronger DXY
On European hours, the slide of the pound drove the GBP/USD pair to the downside. It weakened after a big rally on Thursday and Friday following the Bank of England meeting. Concerns about the trade negotiations between the European Union and the United Kingdom, expected to begin in March, accelerated the bearish correction.
More recently the latest leg lower took place as the pound remains unable to find support and following the released of better-than-expected US economic data. The ISM manufacturing index jumped to 50.9 from 47.8 in December, the highest level since July.
The DXY has erased most of Friday’s losses. It is up by 0.45%, trading back above 97.80. US yields are also higher on Monday but off highs. In Wall Street, equity prices are up, recovering partially from Friday’s sell-off. The Dow Jones gains 0.95% and the Nasdaq climbs 1.45%.