Cable climbs to a one-week high as the US dollar stumbles

<p>Cable is nearing 1.2800 as it takes advantage of some moderate US dollar selling early in New York trading.</p><p>The trendline from the July peak is in danger of giving way but I would be careful to declare the downtrend dead until 1.2819 breaks. That was the high last week in what was a volatile day.</p><p>What worries me about today's rally is that the US dollar is weak despite long-dated yields rising. US 10s are up 3.2 bps to 4.29%, which is a new high for 2023. Normally, higher yields help the dollar but fixed income is also underpinning the pound. Gilt yields are up 5.2 bps to 4.70% and cable has been able to withstand higher Treasury yields for four days running.</p><p>In terms of the rest of today's session, the economic calendar is quiet so it will be down to the ebb and flow to drive the foreign exchange market.</p>

This article was written by Adam Button at www.forexlive.com.