On Wednesday, as US equities declined, the Pound to Dollar (GBP/USD) exchange rate fell to lows just around 1.2050.
The GBP/USD pair returned to over 1.2100 on Thursday with highs at 1.2140, however, as there was strong buying on dips as the US dollar slipped lower.
Early trading saw the UK FTSE 100 index reach a new high as risk appetite increased.
Before a little pullback, the GBP/EUR exchange rate reached weekly highs of 1.1280.
Dollar Tackles Down
After reaching intraday highs of 103.20, the dollar index dropped to 102.65 on Thursday.
Federal Reserve officials have continued to use generally hawkish language, suggesting that interest rates might rise much over 5.00%. However, markets are still holding out hope for a further net improvement in inflation, which would enable rate reduction later in the year. As a result, investors have been purchasing stocks when they are down.
A time of market consolidation is anticipated, according to ING. “We believe that a more patient trading environment might return following this morning’s risk-on attitude and linger until Tuesday’s crucial US inflation report,” the company said.
House Prices are Declining, according to RICS Perspective
Additionally, the indicator of buyer interest dropped to -47, the lowest level since October 2022.