Why has GBP/USD dipped from five-week high?

Surging US bond yields constitute one factor why the GBP/USD pair retreated from five-week high. The pair is also eyeing key US and UK economic data releases on Tuesday. This retreat comes after failing to breach 1.2600, so the pair is now trading at 1.2512 amid climbing US Treasury bond yields. Earlier during the US session the pair registered 1.2497.

GBP/USD traders lean on last week’s US PMI, highlighting an ongoing economic slowdown. The BoE’s rate hike hints echo amid inflation concerns as the market keenly awaits US CPI and UK employment figures.

GBP/USD slumps in the North American session after reaching a fresh five-week high at 1.2599 amidst a light economic calendar, which would gain interest since Tuesday.

Rising US Treasury bond yields and some US Dollar (USD) strength keep the Sterling (GBP) under downward pressure following the GBP/USD failure to crack 1.2600. At the time of writing, the GBP/USD is trading at 1.2513.

Sterling struggles against strengthening USD and climbing US Treasury yields as the market awaits US and UK economic indicators.