Forex
GBP Surges to Six-Month High as US Treasury Turmoil Weighs on Dollar
The Pound to Dollar exchange rate has reached a six-month high above 1.3650 due to renewed turbulence in the US Treasury market, which triggered another bout of dollar selling.
The strong pound has also benefited from improved confidence in the UK's political transition, with investors now focused on whether GBP/USD can sustain its recent advance into a breakout.
UBS forecasts that the Pound to Dollar exchange rate will strengthen to 1.41 by March 2027, while Danske Bank expects GBP/USD to retreat to 1.29 over the next 12 months amid a stronger dollar and pound retreat.