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After hitting a daily low of 1.2609, the GBP/USD pair increased by more than 90 pip, or 0.70%, in the latter part of Friday’s North American session. The Greenback suffered as a result of more than 100 basis points of rate cuts by the Fed the following year due to speculation that it had completed its tightening cycle. At the time of writing, the pair is trading at 1.27058; namely up by +0.00827; +0.66%.
The softer dollar is the primary cause of the GBP/USD surge. Chairman of the US Federal Reserve Jerome Powell managed to counter expectations of a rate cut, but not before he made a significant impact on the US Dollar. The US Dollar Index, which compares the US dollar to six other currencies, fell 0.38% to 103.12. Continue reading…
The pair’s losses should extend to the mid-1.25s after it lost support at 1.2600/1.2605. USD/GBP stays above 1.26. Scotiabank economists evaluate the prospects for the pair.
