TD Securities has cautioned that the recent strength of the British pound against the US dollar is nearing its end due to the US dollar’s renewed strengthening. Analysts noted that the pound’s recent gains were largely driven by widespread selling of the US dollar. Historically, the first quarter of the year is known for strong US economic data, which is expected to boost the dollar’s value against the pound once again. Recently, the Bank of England decided to keep interest rates unchanged, a move that drew criticism from some investors. Additionally, potential leadership challenges facing UK Prime Minister Keir Starmer have created uncertainty in the market. These factors contributed to a roughly 0.7% decline in the GBP/USD rate, bringing it down to 1.3548. The GBP/USD pair is among the most actively traded currency pairs globally, with its fluctuations influenced by global economic conditions, interest rates, political stability, and other financial factors. The US dollar’s strength reflects global investment trends and the performance of the US economy, while the British pound is affected by the UK’s economic policies and political climate. If the US economy continues to report strong data and political uncertainty persists in the UK, further depreciation of the pound is possible. Investors are advised to remain cautious and closely monitor changing trends in the currency market.
Source: binance
