GBP Suffers Sixth Consecutive Loss as USD Strengthens on Global Factors
The British Pound Sterling (GBP) has suffered its sixth consecutive losing session against the US Dollar (USD), despite no domestic economic news driving the decline. The currency's value dropped to around 1.3300, after reaching a high of just below 1.3400 in the early hours of trading.
The fall is attributed entirely to the strengthening USD, which is being driven by three key factors: rising tensions over the Gulf War, a tight American labour market, and expectations of interest rate hikes by the Federal Reserve. The US Dollar Index has risen by around 0.3% to 101.50.
The UK's own economic indicators are also coming under scrutiny, with retail sales data due out on Friday, which is expected to show a decline in sales. The Bank of England (BoE) is also set to meet next week, with interest rate hikes still being priced in by markets.