hello everyone
i thought i wud ask the question here in newbie island although it’s essentially a fundamental question.
cable has been trending down 2 days now, so that means dollar getting stronger than pound, right? why is dollar getting stronger?
please explain to newbie with simple terms (no jargon please, still learning).
much appreciated, many thanks
c88
Yes, GBP/USD falling means the Dollar is rising.
There are a lot of reasons why short-term moves happen. In this particular instance, there’s been a decided shift in psychology regarding US rates. The last of the folks expecting a US rate cut seem to have been washed out of the system, and US rates have been rising aggressively. That is supportive of higher USD values.