GBP/USD Falls As Dollar Gains in Strength
Having jumped after the Scottish referendum last weekend, the GBP/USD pairing continued to rise over the first half of last week reaching a high of 1.6410 on Wednesday. However, it then began to fall and by the weekend was at 1.6245.
The dollar strengthened towards the end of the week after data showed that the US economy grew at a good rate in the second quarter of this year. This added further reason for investors to believe that interest rate rises will come early in 2015. US gross domestic product expanded at an annual rate of 4.6% in the second quarter.
The dollar looks set to remain strong over the coming week with more positive data expected to reinforce its strength. The GBP is also strengthening at the moment with interest rate rises also expected from the Bank of England. As a result this pairing should remain fairly steady.