GBP/USD is trading lower as the dollar rises amid an increase in Treasury yields.
Portfolio Pulse from Benzinga Newsdesk
GBP/USD is trading lower as the dollar rises amid an increase in Treasury yields.
May 29, 2024 | 3:58 pm
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POSITIVE IMPACT
The dollar is strengthening, which is reflected in the rise of the Invesco DB US Dollar Index Bullish Fund (UUP).
As the dollar rises, the UUP, which tracks the performance of the dollar against a basket of major world currencies, is likely to see a positive impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
An increase in Treasury yields typically leads to a decrease in the price of long-term Treasury bonds, which could negatively impact the iShares 20+ Year Treasury Bond ETF (TLT).
Higher Treasury yields generally result in lower bond prices, which would negatively affect TLT, an ETF that tracks long-term Treasury bonds.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70