The dollar surged last night after Powell made clear that rate cuts are not coming any time soon. For anyone needing to buy dollars – whether for a property in the US, university fees or regular transfers – the stronger dollar makes those payments more expensive in pound terms. With safe-haven demand and higher US interest rates both working in its favour, the dollar looks well supported for now, though any de-escalation in the Middle East could take some of the heat out of it.
USD/GBP past year
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