This week Cable returns to its previous levels around 1.38000. The pullback comes as investors eye US inflation levels with regards to the upcoming vote of the pandemic stimulus set to be released to the American public.
Despite the ongoing inoculation campaign in the United Kingdom, the Pound continues to be hammered by a strengthening US Dollar. On Friday’s trading session, the US Dollar witnessed a rally backed by rising Treasury bond yields and attractive interest rate differentials.
In the event that the US Dollar continues to strengthen, the pair may see a continued downturn below 1.38000. On the other hand, with the current positioning of the pair at a key level, traders may see another rally.