GBP/USD Holds Near Multi-Month Highs Amid Dollar Weakness and Strong UK Data
GBP/USD is holding steady at 1.3627 on Tuesday, near its highest level since mid-February. The pair's resilience can be attributed to dollar weakness following the US Treasury's unexpected decision to double its purchases of long-term government bonds.
The sterling is also being supported by strong domestic data, including accelerating inflation and improving business activity and consumer confidence. In July, inflation accelerated to 2.9%, while core inflation came in above expectations at 2.6%.
Investors are now looking ahead to key events later this week, including Fed Chair Kevin Warsh's speech at Jackson Hole on Friday. This could shape expectations for the future trajectory of US interest rates and have a significant impact on the GBP/USD pair.