# British Pound Strength vs. Dollar not Justified: Capital Economics

> Capital Economics says sterling's rally against the dollar, up 3.86% since mid-December, is not justified by interest rate differentials or Brexit developments. The firm attributes much of the move to broad dollar weakness, with the dollar index down 2% in January alone. It expects the pound to retrace some gains if the Federal Reserve speeds up rate hikes in 2018.

- Date: 2018-02-01 · published 2018-02-01T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/67240-british-pound-strength-vs-dollar-not-justified-capital-economics
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

If sterling reverses as forecast, dollar-priced feed imports become cheaper for UK buyers in local currency terms, but the link to grain and feed prices is weak.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/usd/8365-pound-strength-vs-dollar-not-justified-capital-economics

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.