The anticipated depreciation of the British Pound in Q4 2023 is closely tied to the Bank of England's interest rates. This analysis looks into three Sterling pairs that are predicted to be impacted by this development.
The GBP/USD pair is expected to face challenges due to the dominant US Dollar. The strength of the US Dollar has been a key factor in the forex market and its influence on the GBP/USD pair will be pivotal in determining the future trajectory of the British Pound.
The EUR/GBP pair, on the other hand, is tasked with maintaining its multi-month range. The stability of this pair will be crucial for the overall health of the British Pound in the global currency market.
Lastly, the GBP/JPY pair could potentially be swayed by a bullish Bank of Japan. The Japanese central bank's monetary policy and its impact on the Yen will significantly affect this currency pair.
In conclusion, all three Sterling-pairs: GBP/USD, EUR/GBP, and GBP/JPY, are expected to be influenced by various factors including the Bank of England's interest rates, a dominant US Dollar, maintaining multi-month ranges, and a bullish Bank of Japan. These factors will play a crucial role in shaping the Q4 performance of the British Pound.
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