GBP/USD Hits Six-Month High on Dollar's Weakness

GBP/USD has hit a six-month high at 1.3675 in the early London session, marking the fourth consecutive session of gains for sterling against the dollar.

The pair has been trading between 1.3618 and 1.3676 across the past two sessions, with a Friday spike to 1.3675 after UK preliminary activity data beat expectations.

Against the June low of 1.3165, the recovery is substantial, adding 510 pips or a 3.9% advance in just two months.

The reason for sterling's strength lies not with the pound itself, but with the weakness of the dollar, particularly after the Treasury announced it would at least double purchases of longer-dated government bonds.