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

    "China heading towards a 4.5 day work week" (2.5 day weekend) is doing the rounds again
    • June 10, 2025

    This idea has been floated multiple times over past years. Its getting a redo in the headlines again today. Sichuan province city Mianyang is considering a 2.5-day weekend businesses to…

    Continue reading
    Deutsche Bank warns of a higher for longer Fed rates, a growing risk to US borrowers
    • June 9, 2025

    Deutsche Bank strategists caution that as expectations for Federal Reserve rate cuts are pushed further out, the resulting higher borrowing costs are set to pressure U.S. companies more acutely. So…

    Continue reading

    Random News

    Trump Goes To Fort Bragg And Raises More Concern About Cognitive Decline

    • By gonews
    • June 10, 2025
    • 1 views
    Trump Goes To Fort Bragg And Raises More Concern About Cognitive Decline

    AI storage platform Vast Data aimed for $25B valuation in new round, sources say

    • By gonews
    • June 10, 2025
    • 1 views
    AI storage platform Vast Data aimed for $25B valuation in new round, sources say

    2025 Pittsburgh Steelers Preseason Schedule; Dates, Time, TV

    • By gonews
    • June 10, 2025
    • 2 views
    2025 Pittsburgh Steelers Preseason Schedule; Dates, Time, TV

    ‘Incitements of Violence’ – UK Sanctions Israeli Ministers Ben-Gvir, Smotrich 

    • By gonews
    • June 10, 2025
    • 1 views
    ‘Incitements of Violence’ – UK Sanctions Israeli Ministers Ben-Gvir, Smotrich