GBP/USD up to 1.6070 as Production Expands

The pound advanced for a third day against the dollar after a government report showed U.K. industrial production increased more in September than economists forecast.

Sterling reached the strongest level in almost five weeks versus the euro after Halifax said British house prices climbed for the ninth month in October, adding to signs the recovery is gaining momentum. The pound will struggle to extend gains after its recent rally, according to Bank of Tokyo-Mitsubishi UFJ Ltd. U.K. government bonds were little changed before the Bank of England announces a policy decision tomorrow.

“There’s capacity to push a bit higher against the dollar,” said Jane Foley, a London-based senior currency strategist at Rabobank International. “There’s so much good news in the price so it will be difficult to sustain gains much above $1.61.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.