Pound Sterling's six-month high has no British test this week
GBP/USD trades near 1.3650 late on Tuesday, August 25, up around a tenth of a percent on a session that has covered barely 33 pips between a floor just above 1.3600 and a ceiling a shade over 1.3650.
On August 25, the British Pound Sterling (GBP) hit its highest level since February, trading at 1.3650 against the US Dollar (USD). This surge occurred primarily due to the US Treasury's announcement of doubling its purchases of longer-dated government debt, causing the Dollar to fall broadly. The Pound was merely a passenger in this shift, as it was not prompted by any domestic considerations.
While this six-month high for GBP/USD has not been tested within the current week, the currency still lacks a significant domestic catalyst to sustain the momentum. On Friday, August 28, the only event featuring the Pound is the publication of positioning figures, which could provide a glimpse into market sentiment. However, the release of core PCE prices on September 16 and the Fed Chair's key address at the Jackson Hole symposium on September 17 remain the most significant factors that could influence the Pound's future trajectory.
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