Pound Sterling advances against US Dollar as investors trim Trump trades

The Pound Sterling rises to near 1.2750 against the US Dollar as the latter weakens amid holiday mood in the US. 

The US Dollar is preset to end the week on a negative note.

Investors expect the BoE policy-easing cycle will be slower than in the US.

The Pound Sterling (GBP) refreshes a two-week high near 1.2750 against the US Dollar (USD) in Friday’s European session. The GBP/USD pair strengthens as the US Dollar extends this week’s decline in a thin volume trading day due to the Thanksgiving holidays. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects further and posts a fresh more than two-week low near 105.60.

The US Dollar is on course to end the week with a near 1.5% decline. The correction in the US Dollar started on Monday after United States (US) President-elect Donald Trump nominated seasoned hedge fund manager Scott Bessent to fill the position of Treasury Secretary.