GBP/USD Surges to 1.3160 as Dollar Weakens on U.S. Shutdown Chaos and Bank of England Holds Rates Steady
The British pound (GBP/USD) trades near 1.3160, gaining momentum after a volatile week dominated by U.S. dollar weakness, a prolonged government shutdown, and the Bank of England’s (BoE) decision to hold interest rates at 4.00%. The pair, which hit a seven-month low at 1.2820 earlier this quarter, has staged an aggressive recovery as traders unwind dollar longs amid deteriorating U.S. data and collapsing consumer confidence. Market positioning has shifted sharply, with hedge funds rotating out of the greenback into higher-yield currencies like sterling.
The GBP/USD pair opened the week at 1.3045, extended to 1.3162, and is now trading at 1.3115, up roughly 0.55% over the past five sessions. In a single trading day following the BoE announcement, the pound spiked more than 0.8%,…
