Pound approaches the 2023 high in fifth straight day of gains


We’re getting the point where we need to really zoom out to paint a picture of the foreign exchange market. A great example is in cable, where the daily chart illustrates that we’re only 60 pips away from the July 2023 high.

GBPUSD daily

If that breaks, then the weekly chart highlights minimal resistance up to the 1.36 zone.

GBPUSD weekly

The pound initially fell after the July 24 election but it’s since recouped all those losses and more. Kier Starmer’s government is off to an uneven start but will offer stability over the next 4-5 years at a time when the US outlook is far less certain and Europe continues to be a mess.

The UK economy isn’t strong by any means but it’s plodding along and the Bank of England has some room to cut rates. The market sees only a 35% chance of a cut at the Sept 19 meeting but is fully priced for a cut in November (26 bps).

The main driver of cable strength lately is the US dollar side as USD broadly weakens as the market senses a long rate-cutting cycle and lower rates. The market may also be sensing a split congress in light of Kamala Harris’ polling gains. That should lead to a much-tighter US fiscal picture and possibly a rise in corporate tax rates.



  • Related Posts

    US stock markets notch records: Russell 2000 weekly gain is the largest since 2000
    • November 8, 2024

    When Trump autographed a stock chart Closing changes on the day: S&P 500 +0.4% – record close Nasdaq Comp +0.1% DJIA +0.6% Russell 2000 +0.7% Toronto TSX Comp -0.4% Closing…

    Continue reading
    US equity close: Red wave in politics, green wave in markets
    • November 7, 2024

    In addition, Powell was what he always is: A dove. Closing changes: S&P 500 +0.7% Nasdaq Comp +1.5% DJIA flat Russell 2000 -0.2% Toronto TSX Comp +0.8% The market is…

    Continue reading

    Random News

    Diddy Sex Abuse Case Judge Denies Request for Gag Order on Victims

    • By gonews
    • November 9, 2024
    • 1 views
    Diddy Sex Abuse Case Judge Denies Request for Gag Order on Victims

    Leak Scandal – Israel’s Attorney General Grants Authority to Investigate Netanyahu

    • By gonews
    • November 9, 2024
    • 1 views
    Leak Scandal – Israel’s Attorney General Grants Authority to Investigate Netanyahu

    Stipe Miocic Says It’d Be ‘Kinda Cool’ If Trump Wrapped Belt Around His Waist At UFC 309

    • By gonews
    • November 9, 2024
    • 1 views
    Stipe Miocic Says It’d Be ‘Kinda Cool’ If Trump Wrapped Belt Around His Waist At UFC 309

    US tells Qatar to kick Hamas out of the country after terror group rejects hostage deal

    • By gonews
    • November 9, 2024
    • 2 views
    US tells Qatar to kick Hamas out of the country after terror group rejects hostage deal

    California’s Mountain Fire exploded. Find out where to get the latest details.

    • By gonews
    • November 8, 2024
    • 3 views
    California’s Mountain Fire exploded. Find out where to get the latest details.

    Football Predictions Of The Day – Fri, 8 Nov 2024

    • By gonews
    • November 8, 2024
    • 3 views
    Football Predictions Of The Day – Fri, 8 Nov 2024