Pound Sterling extends gains against US Dollar as hit from US debt downgrade lingers
The post Pound Sterling extends gains against US Dollar as hit from US debt downgrade lingers appeared on BitcoinEthereumNews.com. The Pound Sterling moves further up to near 1.3380 against the US Dollar as Moody’s downgraded the US sovereign debt and fresh concerns over US-China trade emerge. China accused the US of undermining the recent trade talks after Washington warned about using Huawei AI chips across the world. The UK secures a “reset” agreement with the EU after signing trade deals with India and the US. The Pound Sterling (GBP) rises to near 1.3380 against the US Dollar (USD) during European trading hours on Tuesday. The GBP/USD pair gains for a second consecutive day as the US Dollar continues to suffer due to a one-notch downgrade in the United States (US) sovereign credit by Moody’s Rating. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, weakens near the weekly low slightly above 100.00. On Friday, Moody’s downgraded the US long-term issuer and senior unsecured ratings from Aaa to Aa1 over the growing $36 trillion US government debt pile. The move prompted fears about investing in US assets and boosted US bond yields substantially. The initial reaction from 10-year US Treasury yields after the rating downgrade was strong, posting a fresh over-a-month high of around 4.56%. After the initial shock, yields have fallen back to near 4.45%. Another reason behind the US Dollar remaining on the back foot is China accusing the US of undermining high-level trade talks in Geneva last weekend. The accusation from Beijing at Washington came after comments from the US Commerce Department last week that discouraged the use of Huawei Technologies Co.’s artificial-intelligence (AI) chips and Chinese AI models. According to a Chinese Commerce Ministry spokesperson, the US Commerce Department’s advice is “discriminatory” and “market distorting,” prompting Beijing to “demand” that the administration “correct its mistakes.” A report from Bloomberg showed last…
The post Pound Sterling extends gains against US Dollar as hit from US debt downgrade lingers appeared on BitcoinEthereumNews.com.
The Pound Sterling moves further up to near 1.3380 against the US Dollar as Moody’s downgraded the US sovereign debt and fresh concerns over US-China trade emerge. China accused the US of undermining the recent trade talks after Washington warned about using Huawei AI chips across the world. The UK secures a “reset” agreement with the EU after signing trade deals with India and the US. The Pound Sterling (GBP) rises to near 1.3380 against the US Dollar (USD) during European trading hours on Tuesday. The GBP/USD pair gains for a second consecutive day as the US Dollar continues to suffer due to a one-notch downgrade in the United States (US) sovereign credit by Moody’s Rating. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, weakens near the weekly low slightly above 100.00. On Friday, Moody’s downgraded the US long-term issuer and senior unsecured ratings from Aaa to Aa1 over the growing $36 trillion US government debt pile. The move prompted fears about investing in US assets and boosted US bond yields substantially. The initial reaction from 10-year US Treasury yields after the rating downgrade was strong, posting a fresh over-a-month high of around 4.56%. After the initial shock, yields have fallen back to near 4.45%. Another reason behind the US Dollar remaining on the back foot is China accusing the US of undermining high-level trade talks in Geneva last weekend. The accusation from Beijing at Washington came after comments from the US Commerce Department last week that discouraged the use of Huawei Technologies Co.’s artificial-intelligence (AI) chips and Chinese AI models. According to a Chinese Commerce Ministry spokesperson, the US Commerce Department’s advice is “discriminatory” and “market distorting,” prompting Beijing to “demand” that the administration “correct its mistakes.” A report from Bloomberg showed last…
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