Traders suggest GBP/USD could reach 1.35 in 2024

Daily Currency Update

Traders are proposing that GBP/USD could reach $1.35 in the 2024 should the UK economy surpass the numerous pessimistic predictions forecasting sluggish growth for the year.

Even though traders anticipate the Bank of England to initiate interest rate cuts in the first half of the next year, the value of the pound has sustained a relatively robust position. The conclusion of 2023 saw a notable decline in business confidence within the UK economy, as diminishing inflation failed to elevate optimism in anticipation of the new year.

Leading economists have revised their forecasts, anticipating the Bank of England to implement its next interest rate cut as early as March. The consensus among them is that the central bank's monetary policy appears excessively hawkish, especially in light of positive developments in the ongoing fight against inflation.