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GBP/USD holds near multi-month highs as the dollar weakens
GBP/USD was at 1.3627, helped by dollar weakness after the US Treasury moved to more than double long-term bond purchases.
GBP/USD held near multi-month highs on Tuesday, sitting around 1.3627 and remaining close to the highest level since mid-February, according to Action Forex.
The pair’s strength was linked to dollar weakness after the US Treasury unexpectedly decided to at least double its purchases of long-term government bonds, with investors also watching for details of new sanctions against Iran.
Attention later this week is centered on Fed Chair Kevin Warsh’s speech at Jackson Hole on Friday, which could shift expectations for the path of US interest rates, while US Treasury demand dynamics and the Iran headline risk continue to frame the dollar move.
In the UK, Action Forex noted that money markets are pricing in one Bank of England rate hike before year-end and an additional 25-basis-point move by early 2027, supported by July inflation at 2.9% and core inflation at 2.6%, plus PMIs indicating a pick-up in business activity and consumer confidence rising to a two-year high in August.
Latest closeGBP/USD 1.354 ▲0.3%