Pound Sterling Surges Due To Dollar Decline
London: 6 November 2023 (TraderMade): In a noteworthy turn of events, the pound exhibited a robust upward trajectory on Monday, building upon the momentum from the previous week's rally.
The GBPUSD pair closed on Friday, 3 November, at 1.23811. On Monday, 6 November, 11:42 AM GMT, the pair was at 1.24238, showing an increase of 0.34%.
It is achieving its highest value in over a month. This impressive climb followed a remarkable performance last week, where the pound posted its most substantial weekly gain in a year, boasting a 2.1% increase.
The GBPEUR closed on Friday, 3 November, at 1.15411, and by 11:48 AM GMT on Monday, 6 November, the pair was at 1.1553882, showing a 0.11% increase.
Financial experts call it a 'dollar story' as the sustainability of the US Dollar is crucial. A consistent softening of the US data may change the scenario.
The sterling's rise was dampened as survey data showed the UK's construction sector contracted for a second straight month in October, primarily due to rising borrowing costs affecting homebuilders. A broader survey covering services and manufacturing indicated a slight improvement from September but remained in the contraction zone.
Simultaneously, the Bank of England maintained interest rates at a 15-year high of 5.25% last week, signaling a bleak outlook for the UK economy. The upcoming GDP data, set to be released on Friday, is expected to show a 0.1% third-quarter contraction, following a 0.2% growth in the prior three months to June.
