GBP/USD Hits Three-Month High at 1.3564 on UK Growth and Dollar Weakness

The GBP/USD pair reached its strongest level in three months at 1.3564 on Monday, marking a 0.23% gain from the previous day's close.

This move can be attributed to several factors, including resilient UK growth, attractive yields, and fading expectations of an imminent Federal Reserve rate hike.

The US Dollar Index slipped 0.20% to 99.363, its lowest level in three months, while EUR/USD climbed 0.32% to 1.1606, a two-month high.

Société Générale sees scope for GBP/USD to strengthen to the 1.38 area, which would require a 1.6% advance from current levels and take the pair back to the upper boundary of its 2026 range.