GBP/USD is expected to record its fourth consecutive weekly gain, marking the longest streak since last March. The British pound is likely to rise 0.4% this week, nearing its highest level since March, after peaking at $1.28 earlier this week. However, this increase is largely due to a weaker dollar rather than a stronger pound.

The British pound is also close to its highest level against the euro since October 2023, primarily because investors do not expect the Bank of England to cut interest rates until later this year. Despite a significant slowdown in overall inflation, some indicators like wage growth and price pressures in the services sector remain above the Bank of England's "safe zone." This suggests that the UK is unlikely to cut interest rates twice this year.

Next week's UK employment and growth data will be crucial, as it may provide investors with guidance on what to expect from the Bank of England in the coming weeks.

News for June 7: GBP/USD Set to Register Fourth Consecutive Weekly Gain

Jun 07 2024

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