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British Pound (GBP) Price Outlook: GBP/USD May Fall Further as USD Strength Persists
GBP/USD will likely extend the falls that began last Friday as the US Dollar continues to benefit from the reselection of Jay Powell as chair of the US Federal Reserve. His reappointment is now expected to be a formality, and that could well mean a faster withdrawal of US monetary stimulus and several US interest rate increases next year. Moreover, the prospect of a UK interest rate hike when the Bank of England’s monetary policy committee next meets on December 16 is still fully priced in to the markets, meaning there is little upside for GBP/USD if that’s confirmed, and substantial downside if it isn’t. ... (full story)