EUR/USD drifts lower after two-month highs
EUR/USD is heading south towards 1.1400, extending pullback from two-month highs. The US dollar rebounds with the Treasury yields amid a mixed sentiment and aggressive Fed pricing. ECB’s Lagarde steps back from hawkish rhetoric on inflation.
GBP/USD is edging lower towards 1.3500, as the US dollar tracks the rally in the Treasury yields. Markets consolidate ahead of key catalysts later in the week. UK GDP and US CPI could move the needle in financial markets.
GBP/EUR rate sustained heavy losses last week but could look to stabilise above an important and nearby level of technical support around 1.18 over the coming days, although Pound Sterling would be vulnerable in the event of any further extended rally by the European single currency.