The British pound rose sharply today, climbing above $1.374, including touching $1.3760, marking its highest level against the US dollar since October 2021. The surge reflects plummeting confidence in the dollar, driven by speculation that former US President Donald Trump may appoint a new Federal Reserve chair before the end of the year, a move that could signal looser monetary policy. Combined with a weakening Fed stance and a cooling job market in the US, investors are shifting to alternative currencies like the pound.
Market analysts say sterling remains upwardly biased despite overbought conditions, with some forecasting further gains toward $1.38 or even $1.40. The rally is underpinned by dovish signals from the Bank of England, where policymakers have hinted at readiness to cut interest rates if economic conditions require it. Observers caution traders to watch for potential pullbacks, especially if attention turns back to UK fiscal policy or inflation data.
