Pound climbs on a weaker Dollar and a UK growth surprise
A weaker Dollar gave GBP/USD the first part of its climb, and a run of UK news gave it the rest. The pair rose through 1.3250 to its highest since October 6, and its only real setback came on the US releases.
The British Pound (GBP) climbed as the US Dollar weakened and UK economic growth exceeded expectations. The GBP/USD pair surged past 1.3250, reaching its highest level since October 6. A surprising UK GDP growth of 0.1% in August, up from a forecasted contraction, and increased factory output played a significant role. The pair has continued its upward trend since, while the Euro against the US Dollar (EUR/USD) has remained relatively flat, contributing to GBP/USD's gains.
A recent poll shows that 54 out of 63 economists now expect the Bank of England (BoE) to raise the UK's Bank Rate to 4.00% in November, up from 90% expecting no movement earlier. Such a hike would align the UK with the Federal Reserve's 3.75%-4.00% interest rate range, closing the recent gap in favor of the Dollar.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
