On Tuesday, the British pound against the US dollar looks neutral. The current quote is 1.1300. The main political intrigue of Great Britain got solved faster than anyone could expect. The new head of the Conservative Party and simultaneously the new PM was elected Rishi Sunak. He is the first PM of Indian origin and the youngest one over the last 200 years.
For GBP, this is good news, though it remains unclear how Sunak will be saving the drowning economy of Britain.
The market is now focusing on the November meeting of the Bank of England. It is scheduled for the first week of the month already. Averaged market expectations presume that the interest rate might be lifted by a lot at once. However, compared to the aggressive monetary policy of the US, this will definitely not be enough. In these circumstances, no aggressive growth of the pound should be expected.
The weak fundamental background in the medium run will for now be playing against any attempts of the pound to start growing.
Source: Roboforex
