Pound Rises While Dollar Softens Post Thanksgiving
London: 27 November 2023 (TraderMade): Sterling reached its highest point in over two months against a declining dollar on Monday, with a cautious market approach limiting losses on the greenback. Market participants closely monitor upcoming economic indicators to gauge potential shifts in policy rates.
The British pound climbed to $1.26129 ( At about 08:23 AM GMT), marking a more than two-month high, fueled by last week's data revealing a marginal return to growth for British companies in November after three months of contraction.
For the month, the pound is on track for a substantial 3.8% gain, its most significant monthly increase in a year.
Performance of other pairs
Compared to exchange rates on Friday, 24 November (Close), the dollar weakened against the yen by 0.258% to 149.059 (08:33 AM GMT), while the euro gained 0.063% to $1.09476. The dollar index slipped 0.048% to 103.23, heading for its worst monthly performance in a year with a loss exceeding 3%.
The Australian dollar rose by 0.162% to $0.65965. The Kiwi edged 0.267% higher to $0.60875. In China, the yuan increased by 0.80% to 7.14902 per dollar. Its offshore counterpart fell nearly 0.2% to 7.16 per dollar.
Market participants returning from the Thanksgiving break focus on a potential peak in US rates and speculate about the timing of the rate cuts. The release of US core PCE prices may provide more insights into the Federal Reserve's future moves.
