GBP/USD: British Pound Rises to One-Year High of $1.2985 on Favorable UK, US Data - TradingView

Key points:

• British pound hits one-year high.
• Currency pair floats near $1.30.
• Bank of England to meet in August.

Illustration by TradingView

Expanding growth in the UK and falling inflation in the US contributed to the surge of the British currency.

• The ​​GBP/USD pair floated at a one-year high of just under $1.30 with a Monday opening price of $1.2985. Forex traders were making a slow yet steady start of trading for the week, riding on positive news from both sides of the Atlantic — in the UK, growth surprised to the upside with a 0.4% expansion in May, after flatlining in April. And in the US, inflation slid under expectations and landed at 3.0% in June. Also, the apparent assassination attempt on former President Donald Trump had almost no impact on the US dollar.
• The broader macroeconomic view bent in favor of the sterling, which hit a peak last seen in July 2023. On the one hand, expanding growth amid the ongoing political regime shift in the UK was seen as a sign of strength for the British currency. And on the other hand, falling price pressures in the US knocked the dollar’s valuation, leading to a retreat of the greenback against major peers on the forex board.
• Looking ahead, the upcoming Bank of England interest rate decision on August 1 is complicating the pound’s potential upside. Expectations are mixed over whether the UK central bank will slash interest rates or keep them unchanged. A rate cut could generally hurt the valuation of the local currency as it makes cash deposits yield lower gains, urging consumers and businesses to take their money and spend or invest in riskier assets.

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2024-07-15 07:03:16Z
CBMijAFodHRwczovL3d3dy50cmFkaW5ndmlldy5jb20vbmV3cy90cmFkaW5ndmlldzplZWIxMDU3YWMwOTRiOjAtZ2JwLXVzZC1icml0aXNoLXBvdW5kLXJpc2VzLXRvLW9uZS15ZWFyLWhpZ2gtb2YtMS0yOTg1LW9uLWZhdm9yYWJsZS11ay11cy1kYXRhL9IBAA

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