Pound Edges Higher as Dollar Rally Shows Early Signs of Exhaustion

The British pound traded marginally higher on Thursday, reaching $1.3248, up 0.05% on the day.

This slight gain was largely driven by dollar softness rather than any domestic UK catalysts.

ING FX strategist Francesco Pesole cautioned that the dollar rally has accelerated and may have overshot its fundamentals.

Pesole expects a correction in the DXY index, which tracks the US dollar against a basket of other major currencies, in the coming weeks, potentially returning to the 100-100.5 area if further data surprises fail to materialise.