The British pound has experienced upward momentum, rising against the US dollar for the third consecutive session. This increase coincides with a weakening dollar influenced by uncertainty surrounding US trade policies and fluctuating market sentiment. Expectations concerning UK interest rates have also been adjusted, contributing to the pound’s performance.
- The British pound rose to $1.277.
- Gains extended for the third session.
- The US dollar weakened amid confusion over US trade policy.
- Markets remain volatile.
- Bets on Bank of England rate cuts this year were scaled back.
- Markets are now pricing in 66 basis points of easing, down from 79 yesterday.
- UK GDP is expected to have edged up 0.1% in February, suggesting a mild economic rebound.
Overall, the British pound is benefiting from a confluence of factors. A softer US dollar and reduced expectations of interest rate cuts by the Bank of England are contributing to its rise. Furthermore, a slight improvement in the UK’s GDP data for February offers some support, suggesting a potential, albeit mild, recovery in the economic landscape. These conditions could signal further strengthening of the pound in the short term.