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Dollar remains dominant against pound
Within the first couple of hours of today’s session, currency traders will be able to digest the latest UK current account and final quarterly GDP figures. GBP/USD has stabilised in the last 24 hours, but still has some way to go in order to claw back all of the ground that it lost against the US dollar.
Over the last couple of years the Bank of England’s long-term outlook has been clear and has encouraged markets to move higher. This stable outlook has now been questione, however, as BoE comments have painted a confusing picture regarding the timeline for interest rate rises. This confusion has coincided with the US economic picture improving and a reversal of that base-building.
The US dollar remains the dominant currency and, until the economic data warrants a rethink, looks likely to keep GBP/USD at or around current levels.