The GBP/USD pair exhibits increasing fragility, reflecting the British pound’s swift devaluation.
The British pound sterling, in conjunction with the US dollar, is witnessing a continuous decline. The prevailing GBP/USD exchange rate is recorded at 1.2140.
The current pound levels mark a fresh low for the past six months.
Investor sentiment suggests that the Bank of England has concluded its aggressive monetary policy cycle and is unlikely to raise interest rates in the near term. This decision stems from deteriorating economic conditions and diminishing inflationary pressures.
Throughout September, the pound has experienced a 4% depreciation, representing its weakest performance since August of the previous year.
In the previous week, the Bank of England maintained the interest rate at 5.25% per annum, deviating from the monetary tightening measures initiated in December 2021.
Additionally, the robustness of the US dollar is exerting significant downward pressure on the GBP.
The post The Pound Faces Swift Depreciation: Overview for September 28, 2023 appeared first at R Blog – RoboForex.