GBP/USD drops below 1.39 as S&P 500 futures turn negative

FX
  • GBP/USD prints a session low of 1.3871, while US yields stay flat.
  • Dollar draws bids as the US stock futures drop.

The US dollar is drawing haven bids and pushing GBP/USD lower, with the US stock futures signaling renewed risk aversion

Cable fell to a session low of 1.3871 soon before press time, having traded at 1.3932 in early Asia. 

The futures tied to the S&P 500 are trading more than 100 points lower at 31,392. The index jumped over 2% on Monday, confirming its best single-day gain since June, as bond yields eased. The 10-year Treasury yield fell to 1.38%, having clocked a 12-month high of 1.61% on Thursday.

The benchmark yield remains sidelined near 1.4% at press time. Even so, the S&P 500 futures are nursing losses and pushing the dollar higher against major currencies. 

The broad-based dollar demand could be associated with gold’s relentless slide. The yellow metal now trades near $1,712 per ounce, the lowest since June 15, 2020. Prices are down over $100 from the high of $1,817 observed on Feb. 23. 

Technical levels

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