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Downtrend when meeting resistance of GBPUSD
Sterling was last 0.06% lower at $1.2598, but hovered near Friday's over two-month peak of $1.2615, on data last week showing that British companies unexpectedly reported a marginal return to growth in November after three months of contraction.
"That indicates the resilience of the UK economy despite the very aggressive monetary policy tightening from the Bank of England," said Carol Kong, a currency strategist at Commonwealth Bank of Australia (CBA). "But we still expect the UK economy to weaken and experience a short-lived recession."
The pound was on track for a roughly 3.7% gain for the month, its largest monthly gain in a year, aided by a falling U.S. dollar.
"That indicates the resilience of the UK economy despite the very aggressive monetary policy tightening from the Bank of England," said Carol Kong, a currency strategist at Commonwealth Bank of Australia (CBA). "But we still expect the UK economy to weaken and experience a short-lived recession."
The pound was on track for a roughly 3.7% gain for the month, its largest monthly gain in a year, aided by a falling U.S. dollar.
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