Pound Gbp Registers Its Biggest Monthly Gain

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Pound Gbp Registers Its Biggest Monthly Gain

Pound (GBP) Registers Its Biggest Monthly Gain Since 2020

It seems that the GBP has managed to register one of its biggest increases on a monthly basis against the USD! This increase was so big that it was only last seen in July 2020! But when we look at the performance of CHF and JPY against the USD in November, they managed to gain even more than the GBP!

Overall, GBP/USD pair has risen by 5% during November, mainly due to the decrease in US inflation and a promise of smaller rate hikes in the future.

During October, GBP only managed to gain 2.7% against the greenback. At that time, the UK got its new Prime Minister Rishi Sunak. The previous PM Liz Truss had plans for massive tax cuts, which were weighing heavily on the GBP. But since she left the post, her plans were also tossed aside as well.

Overall, GBP managed to rise above $1.20, which is way higher than the $1.033 rate during September. But the performance during November has less to do with the GBP and more to do with the US economy. That's why all the major currencies actually gained against the greenback. The most notable of all is the Yen which jumped by 7% against the USD.

Since the start of 2022, high-interest rates have been attracting most of the money away from other currencies and toward the USD. But since the inflation seems to be going down from October's data, there is hope that the Fed will also slow down.

As a result of this optimism, the dollar index and the bond yields registered one of the biggest drops in the last couple of years.

Looking ahead, the next Fed meeting during December will be a key event to watch for the GBP/USD and any other pair counting the USD. But for now, it seems that all the other currencies are enjoying healthy gains against the US Dollar.

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