Pound Posts Best Week in Months, Holding Near $1.35 as BoE's 6-3 Split Lifts Sterling
Updated
Updated · Action Forex · Aug 4
Pound Posts Best Week in Months, Holding Near $1.35 as BoE's 6-3 Split Lifts Sterling
3 articles · Updated · Action Forex · Aug 4
Summary
Sterling ended July up more than 1% against the dollar and held just below $1.35, marking its strongest week in months.
A pledge of fiscal discipline from Britain's new government and the Bank of England's unexpectedly hawkish 6-3 vote to hold rates steady reassured investors and boosted the pound.
The dollar weakened after the Fed held rates for a fifth straight meeting and Chair Kevin Warsh gave little guidance, leaving the dollar index on its worst weekly run in three months.
GBP/USD is now compressed near 1.3427 in a multi-month triangle, with a break above 1.3510 pointing toward 1.3594 and a drop below trend support exposing 1.3200.
Incoming U.S. labor data is seen as the next key catalyst as traders weigh whether sterling can extend gains or the dollar can recover.