GBP/USD Sentiment Shifts as Tech Earnings Spark Risk Appetite
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Broader risk sentiment is getting a boost from this week's earnings season, with strong results lifting equity markets and encouraging flows into higher-beta, risk-sensitive currencies including sterling.
When risk appetite improves, the dollar's traditional safe-haven bid tends to soften, creating room for GBP/USD to find modest support even amid an otherwise hawkish US rate backdrop.
That said, this risk-on effect is secondary to interest rate dynamics, meaning any renewed equity market weakness or earnings disappointment could quickly reverse the modest tailwind currently supporting cable.