The GBP strengthened against the USD amid softer dollar pressure ahead of the Fed’s Jackson Hole meetings, with positive UK data and fading BoE rate-cut expectations supporting the pound.
The British Pound (GBP) saw mixed trading in Monday morning’s forex markets.
While GBP was up against the US Dollar (USD) - which was weaker ahead of the Fed’s Jackson Hole meetings – it remained flat against the Euro (EUR) and was down versus the Japanese Yen (JPY).
GBP/USD touched a one-month high, trading around the mid-1.2900s.
Whilst the Fed is the main factor, the brits can also claim positive UK economic data and diminishing expectations of a September interest rate cut at the Bank of England (BoE).
The Pound's resilience is also supported by solid UK economic indicators including a rebound in retail sales and a drop in unemployment.
Technical analysts meanwhile point to GBP/USD potentially continuing a short-term upward trajectory, with potential resistance levels said to be around 1.3042.
Many may meanwhile await fresh market cues from upcoming events which this week include the release of flash PMI data and the Jackson Hole Symposium.
