Fiscal Risks Limit Pound's Gains Against Dollar, BNY Says
BNY's Geoff Yu notes that fiscal concerns are limiting the British pound's upside against the US dollar, even as energy price pressures persist.
GBPUSD
According to BNY's Geoff Yu, the Bank of England is likely to leave monetary policy unchanged for now. Markets have already tightened financial conditions, reducing the immediate need for additional rate moves despite ongoing energy-driven price pressures.
However, fiscal risks in the UK are capping further gains for the pound versus the US dollar. The assessment suggests that while inflation remains a concern, the central bank may see current market tightening as sufficient.
Source: FXStreet Forex News