The British pound is trading positively, rising against the US dollar amid general dollar weakness. The pound is currently around 1.3440 against the dollar, retreating slightly from earlier highs. UK GDP data and Bank of England monetary policy expectations are key drivers, while global central bank support for the Fed chair is also providing support.
- The British pound rose toward $1.35, approaching last week’s more than three-month high of $1.357.
- The rise is attributed to investors selling the dollar amid concerns over the Fed’s independence.
- Jerome Powell stated the US Department of Justice had subpoenaed the Fed.
- UK monthly GDP figures are being awaited.
- UK employers scaled back hiring in December.
- GBP/USD trades positively, receding from earlier highs around 1.3460 and revisiting the 1.3440 region.
- The UK economy is expected to have expanded 0.1% in November.
- BoE policymaker Alan Taylor expects interest rates to fall to their neutral levels soon.
- The US Dollar Index edges down to near 99.10.
- The US PPI data for October and November will be published at 13:30 GMT.
- Chiefs of global central banks have shown support towards Fed Chair Jerome Powell.
Overall, recent economic indicators and central bank activity influence the pound’s performance. Weaker dollar sentiment driven by concerns over Federal Reserve independence, coupled with anticipation surrounding UK economic data and Bank of England policy outlook, appear to be the main catalysts. Global support for the Fed Chair in the face of political pressure further contributes to the market’s complex dynamics.