The British Pound (GBP) has bounced against the US Dollar (USD) so far this week ahead of today’s UK election, MUFG FX strategists note.
GBP/USD benefits from weak US data
“Cable rose to a high of 1.2777 on Wednesday after failing to break below support at the 1.2600 level earlier this week. GBP/USD benefited on Wednesday from the release of more disappointing US economic data.”
“According to Bloomberg, US economic data surprises have been negative relative to expectations since May and it is the worst streak of negative economic surprises since the summer of 2022.”
“In contrast, economic data releases have surprised on the upside in recent months. UK GDP growth in the first quarter was revised up further by 0.1% to 0.7% qoq and BoE staff expect the stronger growth to continue in the second quarter (+0.5% qoq).”
Source: Fx Street
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