Sterling has recently gained ground against the US Dollar, but faces a week with few domestic trading cues. Despite a looming general election in the UK, market reaction has been muted. The Pound finds support in resilient inflation and positive economic data, suggesting the Bank of England may delay rate cuts until August. However, the Dollar has received support from the Federal Reserve's discussion of potential future rate hikes if inflation remains elevated. With uncertainty surrounding US interest rates and limited UK data, the Pound is expected to weaken this week.

British Pound Weekly Forecast: Lack of Local Cues Could See a Drift Lower

May 28 2024

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