US Dollar (USD) Exchange Rates Sink as Debt Ceiling Resolution Renews Risk Appetite On Friday, a fresh wave of risk aversion dampened Sterling sentiment and GBP/USD retreated from a 3-week high. Increased consumer borrowing may have increased the likelihood of consecutive interest rate hikes from the BoE, demonstrating that households are still struggling to cope with inflation. In the second half of the week, the Pound tumbled against several of its peers, correcting from recent highs: against the US Dollar (USD), however, GBP extended its uptrend into Thursday. Moreover, risk sentiment deteriorated as the US labour market tightened, increasing the likelihood of further interest rate hikes from the Federal Reserve. Midweek, GBP/USD tumbled through the early Asian session: concerns that the Pound was overbought may have pressured the currency. Into Tuesday, markets digested news that a deal had been agreed in principle to suspend the US debt ceiling, inspiring further bullish tailwinds. The Pound found support over the course of last week’s session from bullish BoE rate hike bets as well as a risk-on mood, which buoyed GBP against safe-haven peers.Ī bank holiday at the start of the week limited Sterling’s initial gains, but an upbeat market mood prevented GBP from falling in the Pound US Dollar exchange rate.

Pound (GBP) Exchange Rates Enjoy Central Bank Tailwinds The Pound US Dollar (GBP/USD) exchange rate firmed last week, as the Pound (GBP) was buoyed by Bank of England(BoE) tailwinds and risk-on sentiment.Īt the time of writing, GBP/USD is trading at $1.2461, having fallen by almost a full percentage point over the course of the past 7 days.

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