The Pound to Dollar exchange rate can continue to advance in the coming days according to our Week Ahead Model. Fedspeak and U.S. payrolls are the fundamental risks to the positive setup.
GBP/USD Looks to 1.34 Next
- Category: USD
The British Pound extended its rally against the U.S. Dollar, but month-end flows and overbought conditions could prompt a pullback in the coming days.
The Dollar is under renewed pressure after two members of the Federal Reserve's interest rate setting committee (the FOMC) signalled the market was right to expect further interest rate cuts.
The British Pound can continue to advance against the Dollar in the coming weeks, but the next few days could see some consolidation around current levels.