The pound against the dollar was the day’s top performer, surging over 160 pips from last week’s low.
Driving the move were reports of a potential Ukraine peace plan and rising Gilt yields amid concerns over higher government spending.
UK data came in largely as expected, with January borrowing figures in line with forecasts. Meanwhile, February’s revised Manufacturing PMI ticked up to 46.9 from the preliminary 46.4—still weak but slightly improved.
A widening yield gap added fuel to the rally, as the UK 10-year Gilt yield climbed while the US 10-year Treasury yield continued to decline. This helped propel GBP/USD higher, with buyers eyeing the 1.2700 level.
The pair peaked at 1.2724, closing above last week’s resistance at 1.2675. From a technical standpoint, GBP/USD looks bullish, and if momentum persists, a move towards 1.2800 remains possible.
