Ella 
GBP/USD traded higher on Monday in Asia, trading around 1.2460 as the U.S. dollar (USD) held steady. The US dollar remains below its peak since November 2023, which may limit the upward momentum of GBP/USD.
The U.S. dollar index (DXY) is hovering near 106.00. As of press time, the two-year U.S. Treasury yields and the 10-year U.S. Treasury yields were 4.91% and 4.55% respectively. Rising U.S. Treasury yields could provide support for the U.S. dollar (USD).
At the same time, the Federal Reserve appears set to reassess its monetary easing program due to persistent U.S. inflation and strong macroeconomic indicators. The odds of the Fed keeping interest rates unchanged at its June meeting have increased significantly, rising to 63.5% from 46.8% the previous week, according to the CME FedWatch tool.
On Monday, Kansas Fed President Lorie Logan will participate in a panel discussion at the Bank of Japan-International Monetary Fund (BOJ-IMF) meeting. In addition, U.S. retail sales data will be released later in the North American session.
On the other hand, GBP/USD fell to its lowest level since November on Friday, hitting 1.2426. Rising tensions in the Middle East may prompt traders to seek the safety of the U.S. dollar.
