GBP/USD Reverses Gains as Strengthening US Yields Move Dollar Off Lows



Investing.com – The dollar traded lower against a basket of major currencies easing off session highs as US bond yields pared some of their gains but remained well supported.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.11% to 90.06.

The 10-year Treasury yield eased from session highs, prompting a tick lower in the dollar as congress neared a vote on a budget deal needed to avert a government shutdown.

“I think we will,” House Speaker Paul Ryan said when asked whether the bill will be passed. “This is a bipartisan bill. It’s going to need bipartisan support. We are going to deliver our share of support.”

The vote comes amid opposition from both sides of the political isle amid concerns that the budget deal does nothing for young immigrants. The budget deal would have to be passed before midnight to avoid a government shutdown.

Upbeat labor market data, meanwhile, did little to offset risk off sentiment investor jitters as the safe-haven yen made strong gains against the greenback.

The U.S. Department of Labor reported Thursday that decreased 9,000 to a seasonally adjusted 221,000 for the week ended Feb. 4, beating forecast for a 6,000 increase.

fell 0.39% to Y108.94 as investors piled into safe-haven yen amid risk-off sentiment.

rose 0.38% to $1.3929 after the Bank of England stood pat on interest rates but signalled that rate hikes could be needed earlier than expected as the rapid pace of inflation continued. GBP/USD rose to a session high of $1.4065 before paring gains.

rose 0.02% to $1.2264, while rose 0.09% C$1.2578 as the loonie continued to come under pressure amid falling oil prices fell heavily.

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