The British Pound is by far the strongest currency in the G10 today. The dollar was gaining in the first part of the session, but a significant drop in yields triggered a profit taking. On the other hand, market sentiment improved thanks to the appointment of Sunak as Prime Minister of Great Britain, as investors hope for some peace in British politics for some time, which may lead to a greater recovery of this currency. Let us recall that the UK 10-year bond yields have already dropped to around 3.6%!
In today's speech, Sunak indicated that his goal is to bring financial and economic stability to Great Britain and does not rule out making difficult decisions. In addition, we have a BoE decision next week and the market is now pricing in a 80 basis point hike to 3%.
GBPUSD gains over 1% and breaks through 1.1400, highest level since October 17th. Source: xStation5
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