The expected depreciation of the British pound in the fourth quarter of 2023 is closely linked to the Bank of England’s interest rates. This analysis looks at three Sterling pairs that are predicted to be affected by this development.
The pair is expected to face challenges due to the dominance of the US dollar. The strength of the US dollar has been a key factor in the forex market and its influence on the GBP/USD pair will be crucial in determining the future trajectory of the British pound.
The pair, on the other hand, are tasked with maintaining the reach for several months. The stability of this pair will be crucial to the overall health of the British pound in the global currency market.
Finally, the pair could potentially be influenced by a bullish Bank of Japan. The monetary policy of the Japanese central bank and its impact on the yen will significantly influence this currency pair.
In conclusion, all three Sterling pairs: GBP/USD, EUR/GBP and GBP/JPY, are expected to be affected by several factors including Bank of England interest rates, a dominant US dollar, the maintenance of multi-month margins, and a bullish Bank of Japan. These factors will play a crucial role in shaping the British pound’s performance in the fourth quarter.
This article was produced with the support of AI and reviewed by an editor. For more information see our General Terms and Conditions.
