Sterling's Steady Ascent: A Four-Month Streak Against the Dollar
Sterling remains strong, securing its fourth consecutive monthly gain against the dollar. Positive UK economic data bolsters the currency amidst U.S. tariff and debt concerns. While gains outweigh recent declines and upcoming UK trade decisions loom, analysts remain cautious about significant pound strengthening and economic growth.
Sterling held its ground on Friday, paving the way for a fourth consecutive month of gains against the dollar. The strength comes amid positive economic indicators in Britain, contrasting with concerns about U.S. tariffs and debt affecting the dollar.
Kit Juckes, chief FX strategist at Societe Generale, noted that sterling's stability is underpinned by favorable data trends. Currently trading at $1.3472, the pound has made significant strides, although slight decreases were observed this week following a strong 2% rise last week.
As the dollar faces its fifth monthly decline, the pound is poised for a weekly setback after six weeks of consistent rises. The UK economy faces hurdles, but traders are focused on a multi-year spending review by finance minister Rachel Reeves, highlighting growth and budget balancing challenges ahead.
(With inputs from agencies.)
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