UK/US yield differential continues to support the GBP/USD

Yesterday the GBP/USD stalled on the topside at 1.2923. The price action that followed ahead of the US close saw it fall back to 1.2872 ahead of the US close, where it later ended that session at 1.2882. The price action so far this morning has just seen the Pound reclaim that 1.29 handle, up from an earlier Asian session low at 1.2876. The noted rising UK yields, at the same time as the US equivalent 10 year note is falling continues to support the fundamental reasons why the Pound has lifted to 2025 highs this week. The prospect of this delivering further upside in the Pound was noted here yesterday and that has not changed, all the while the fundamentals support the move. Of course the dollar is weaker across the board right now. Hence, the push higher in the GBP/USD is not just a UK dynamic. Naturally, the US jobs report will be front and centre to any further gains in the Pound ahead of the weekend. There will be more detail to add on that and what is expected by the markets later this morning. The GBP/USD is right now at 1.2901