British Pound: Conditional resilience under policy scrutiny – DBS
DBS Group Research’s Philip Wee highlights the challenges facing GBP/USD as the UK Autumn Budget and FOMC decision put fiscal credibility and monetary policy divergence in focus.
DBS Group Research's Philip Wee has identified several challenges facing the GBP/USD exchange rate as the UK Autumn Budget and Federal Open Market Committee (FOMC) decision take center stage. With expectations of a hawkish stance from both the Federal Reserve and the European Central Bank (ECB), and prospects of a Bank of England rate hike, the British Pound has outperformed the Euro over the past week.
Furthermore, the Pound has proven to be a relatively resilient alternative amid heightened political risks in the US and France. As the market navigates these policy events, GBP has managed to hold up better than the Euro. Additionally, GBP has emerged as a less vulnerable alternative to the political risks in both the US and France.
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