Pound Sterling Price News and Forecast: GBP extends rally as Republicans lose both US Houses

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British Pound extends rally as Republicans lose both US Houses

The British Pound (GBP) posts a fresh seven-week high at around 1.3500 against the US Dollar (USD) in the European trade on Wednesday. The GBP/USD pair strengthens as the victory of United States (US) Democrats in both houses of Federal law has weighed heavily on the US Dollar.

As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.47% lower to near 101.40. Read more...

Pound at seven-week high: Bank of England takes Centre stage

GBP/USD rose sharply to 1.3463 on Wednesday, remaining near its highest level since 15 September. Over the past four weeks, the pair has gained approximately 1.67%, and over the past 12 months, 3.01%. The pound is supported by expectations that the Bank of England will return to policy tightening, while nervousness over the US midterm election results is weighing on the dollar.

Markets expect the Bank of England to raise interest rates on Thursday for the first time since 2023. The main argument for such a step remains heightened inflation risks amid the war with Iran, combined with the relative resilience of the UK economy. Read more...

British Pound nears 1.3500 against US Dollar amid Trump's defeat in US midterms

The British Pound (GBP) accelerated its rally against a weak US Dollar (USD) on Wednesday, boosted by news that the Democrats took control of the House and the Senate in the US midterm elections held on Tuesday. The GBP/USD has appreciated 0.5% on the day so far, reaching seven-week highs above 0.3480 at the time of writing

News from the US has confirmed resounding disapproval of President Donald Trump’s policies, which has reached strongholds such as Kansas, Ohio, North Carolina, and Texas, which have been governed by Republicans for decades. Read more...

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