Trending on ETFdb.com: Talks of Hard Brexit Trigger Hard Fall for Pound; Fed’s Divergent Path Lifts Dollar to Seven-Month High
October 13, 2016 at 11:00 AM EDT
The British pound and U.S. dollar diverged sharply this week, as talks of geopolitics and monetary policy weighed on the currency markets. The British pound fell to fresh 31-year lows against a resurgent U.S. dollar, which in turn reached seven-month highs on stronger domestic economic cues. The prospect of an imminent rate hike from the Federal Reserve also contributed to broad selling pressure in the government bond market.