The Pound is closing in on a two-year high against the USD en route
to crossing the mythical barrier of 2 USD. Many traders and economists
believe that it is only a matter of time before this threshold is
breached- that it is a question of when and not if it will happen. This
month, the Bank of England raised short-term interest rates to 5%,
bridging the gap with US rates and eroding one of the last pillars that
is propping up the USD. Once interest rates converge, many short term
investors will likely shift funds out of US capital markets, and the USD
will adjust to more closely reflect economic fundamentals.
Read More: Pound threatening $2 mark
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