The GBP/USD currency pair continued to rise for a fourth day, buoyed by monetary policy expectations on both sides of the Atlantic. The Pound strengthened against the Dollar, building on gains from September’s highs, as market sentiment turned cautious on further interest rate hikes by the Federal Reserve, according to the minutes of the latest FOMC meeting.
Investors are also closely monitoring upcoming economic releases. The British Chancellor of the Exchequer, Jeremy Hunt, is scheduled to deliver his Autumn Statement in the House of Commons, while key U.S. economic data is expected to provide further direction for the currency markets.
The recent uptrend in the GBP/USD was further strengthened by comments from Bank of England Governor Andrew Bailey. Speaking at a Treasury Select Committee hearing on Tuesday, Bailey emphasized the need for continued high interest rates in response to ongoing inflation concerns. His comments challenged some investors’ expectations for an imminent easing of monetary policy and supported the Pound’s performance.
As traders navigate a complex economic landscape, the interplay between central bank policy and economic indicators continues to be a driving force behind currency valuations. With key statements and data on the horizon, market participants remain vigilant for signals that could further influence the currency’s trajectory.
