Pound Resilient on UK Growth: MUFG Sees Further Gains Against Dollar

MUFG analysts say the British pound is showing resilience against the US dollar due to the UK's growth outlook.

The bank's currency strategists see room for further GBP/USD gains, citing relatively stronger UK economic fundamentals compared to the US.

This divergence in economic performance is a primary driver of the currency pair's movement, according to MUFG.

The bank's forecast implies that the pound could continue to appreciate against the dollar in the near term, particularly if UK inflation remains sticky and the Bank of England maintains a more hawkish stance relative to the Federal Reserve.