The British Pound (GBP) has strengthened against the US Dollar (USD) this week leading up to the UK election, according to MUFG FX strategists.
The GBP/USD pair saw a rise to 1.2777 on Wednesday after finding support above 1.2600 earlier in the week. The Pound benefited from disappointing US economic data releases on Wednesday.
US economic data has been consistently falling short of expectations since May, marking the worst stretch of negative surprises since the summer of 2022. On the other hand, the UK has seen positive economic data releases in recent months, with Q1 GDP growth being revised higher to 0.7%Q/Q and expectations of continued growth in Q2 (+0.5%Q/Q) by the Bank of England’s staff.