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British pound is highly planned to continue rising against the US dollar.
Matt Cardy | Getty Images
A British Libra It is located in more than three years in its highest level and analysts are ignored.
The British currency was seen around the $ 1.36 brand on Wednesday morning in London.
He marked a small decline from Tuesday, Sterling did the highest level from January 2022.
This year, so Libra rose by 8.7% against Greenback.
GBP / USD price
Against the euroHowever, Sterling fell by 2.9% over the year. Eventually there was a higher negotiation against the Eurozone currency, as it buys a pound about 1,173 euros.
Dollar weakness
According to Janet Mui, according to the study of the RBC Brewin dolphin market, a large part of the rising pound route is relating to the weakness of the dollar below.
“The relative strength of the pound has been weaker Dollar The story this year, “CNBC said by Email on Wednesday.
Donald Trump Unexpected Trade Policies He shook confidence in this year’s active AmericansThis, as a result, has turned on concerns about dollarizing markets.
Paul Jackson, the global head of the Assignment of Assets in Invesco, said Sterling was on a journey to recover the “extreme low” after the former prime minister of Liz Truss. The so-called mini budgetIt was sparkling Hard sale Bonus of the Book and UK government in 2022.
This year he agreed, however, a large part of the movement this year was attributed to the vulnerability of the dollar, Sterling expressed a simultaneous repayment against the euro.
Will sterling higher?
“I would expect this model to continue in the future, weakening with the U.S. economy (and investors are doubts about the prosecutors and tariff policies, while the prosecutorous boost (especially Germany) said.
Argued that the ECB would form most of its funding for the current cycle, Banks of England and the Federal Reserve to “make a lot of catches.”
“In 12 months, I would expect about 1.40 GBPUSD and be about 1.15 GBPEUR (currently 1.17),” Jackson added.
Jackson’s forecast represents approximately 2.9% premium than the current exchange rates against the dollar.
RBC Brewin Dolphin proposed that in the coming months, the view of the British Liber is not excessive excessive.
“In the nearby periods, it can be upside down due to the softer economic moment in the UK and the Bank of England is a greater framework for cutting rates.” He said.
“Looking forward, potential catalyst for each pound could be better relations with the EU, especially if it returns to more concrete action over time.”
Brian Mangwiro, Barings in the multi-asset team took a more pessimistic approach.
“We are in the medium-term GBP. We would forecast in EURGBP 0.875 and GBPUSD at 1.30 (in six months) said CNBC on Wednesday.
Argued that the macroeconomic background does not justify the performance of Sterling this year instead of a reflection of a Post-liberation day US dollar sale.
Dollar index so far.
“Markets were excessive bears in the UK Budget of Kancellor Reeves“He added.” Therefore, positive data surprises were protected for GBP. However, we expect economic growth and inflation of the UK; The signs are already showing that it also recognizes the Bank of England. This supports the BOE rate for more cuts and ultimately weighs on pounds. “
Mangwiro also noticed that he thought the dollars of dollarization seemed “too much”.
“Feelings are likely to be resistant to the explains and profits of US growth perspectives and corporate profits,” he said. “Along with the current USD short positioning, which supports a USD bounce, dragging the smaller cable.”
