Markets.com Logo
euEnglish
LoginSign Up

British pound at highest levels since August as USD slides

Nov 29, 2023
4 min read
Table of Contents
  • 1. Pound sterling hovers around $1.26 on hawkish comments from BoE 
  • 2. UK consumer confidence: GfK index reading jumps in November despite lingering inflation pain 
  • 3. GBP forecast: Analysts say pound could strengthen further in the near-term 

British pound at highest levels since August as USD

 

Pound sterling hovers around $1.26 on hawkish comments from BoE 

The British pound held onto its gains above the $1.26 threshold, reaching its highest level since late August, as investors processed recent hawkish statements from Bank of England (BoE) officials. 

Deputy Governor Dave Ramsden on Tuesday said that Britain's monetary policy is likely to adopt a "restrictive" approach for an extended duration to steer inflation back to the central bank's 2% target. 

Chief Economist Huw Pill stressed that the BoE needs to remain resolute in its fight against inflation, emphasizing that there is no room to ease its tight monetary policy. Concurrently, recent data indicated a stabilization in the UK's private sector activity in November, surpassing market expectations and marking the end of a three-month contraction period.  

The Bank of England, which maintained its interest rates at 5.25% in its last two meetings following 14 consecutive increases, is closely watching for potential upward risks to inflation.  

Although financial markets strongly believe that rates have reached their peak, BoE Governor Andrew Bailey recently said that it is "too early" to consider rate cuts. 

 

 

 

UK consumer confidence: GfK index reading jumps in November despite lingering inflation pain 

The GfK consumer confidence index — a monthly tracking of UK consumers' views of their finances and the economy — saw a better-than-expected improvement in November, increasing to -24 from October's three-month low of -30. 

Joe Staton, GfK's client strategy director, commented on the November reading: 

"Recent ups and downs in confidence have underlined the nation's topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.” 

The UK economy has suffered stagnating growth, but the GfK’s measure of how British consumers view the economy in the 12 months ahead went up to –26 from –32 in October, while  

 

GBP forecast: Analysts say pound could strengthen further in the near-term 

In their GBP forecast, issued on November 28, analysts at MUFG Bank said that the British pound could strengthen against both the dollar and euro in the coming weeks, although those gains would stand on “shaky foundations”: 

“Fears over more persistent inflation risks in the UK encouraging rate market to price in more gradual dovish BoE policy shift. The developments should help to provide more support for the GBP in the near-term in so far as short-term yield spreads are moving back in favour of the UK. However, we remain skceptical that the recent upward adjustment for UK rates will be sustained.  

The GBP could strengthen further in the near-term against EUR and USD, but the gains are built on shaky foundations.” 

Shaun Osborne, Chief FX Strategist at Scotiabank, said the pound-to-dollar rate was headed toward the low 1.27s: 

“New highs for the move up and solid looking DMI oscillators across the short, medium and long-term studies give the GBP a positive technical undertone.  

Cable closed out last week above the 50% retracement resistance (1.2589) which targets additional gains towards 1.2720 (61.6% Fib) now.  

Minor dips to the figure area (or just below) should be well-supported.” 

At the time of writing on Tuesday, the GBP to USD exchange rate traded around the $1.2639 level, with sterling having gained over 0.8% against the greenback over the past 5 days. As of November 28, the UK currency has gained close to 4.5% against the dollar year-to-date. 

The DXY index, a measure of U.S. dollar strength against six major currencies, was down 0.11%, trading around the 103 mark. The DXY has shed close to 3.4% over the past month. 

When considering foreign currency (forex) for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. 


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Georgy Istigechev
Written by
Georgy Istigechev
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -0.71%
  • EUR/USD

    chartpng

    --

    0.04%
  • Cotton

    chartpng

    --

    -0.28%
  • AUD/USD

    chartpng

    --

    -0.42%
  • Santander

    chartpng

    --

    -1.43%
  • Apple.svg

    Apple

    chartpng

    --

    0.51%
  • easyJet

    chartpng

    --

    -1.59%
  • VIXX

    chartpng

    --

    1.80%
  • Silver

    chartpng

    --

    0.39%
Tags DirectoryView all
Table of Contents
  • 1. Pound sterling hovers around $1.26 on hawkish comments from BoE 
  • 2. UK consumer confidence: GfK index reading jumps in November despite lingering inflation pain 
  • 3. GBP forecast: Analysts say pound could strengthen further in the near-term 

Related Articles

monetary Policy

Week Ahead: Monetary Policy Focus Turns to RBA and RBNZ

On Monday, 7 July at 09:00 GMT, the Eurozone will release its Retail Sales YoY for May, expected to slow to 1.5% from 2.3% due to base effects and weak consumer demand.

Tommy Yap|about 15 hours ago

Solana Price Gains 4%: What is the price target for Solana?

Solana Price Gains 4%: Solana, a prominent blockchain platform known for its high-speed transactions and low fees, recently saw a notable increase in its price by approximately 4%.

Ghko B|3 days ago

Bitcoin Price Outlook: What will be the value of Bitcoin in 2025?

Bitcoin Price Outlook: Bitcoin has long been a subject of intense discussion and speculation, captivating attention across the world.

Frances Wang|3 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.