GBP/USD May Weaken on Strong U.S. Data and UK Political Risks, Societe Generale Says

According to Societe Generale analyst Kit Juckes, reported by Jin10 on May 14, GBP/USD may face further downside pressure if upcoming U.S. economic data comes in stronger than expected while UK domestic political uncertainty rises. Juckes noted that robust retail sales figures and higher-than-expected import and export price data would reinforce market skepticism about the Federal Reserve's room to cut rates.

Market concerns center on potential leadership challenges to U.K. Prime Minister Keir Starmer following Labour's weaker-than-expected performance in local elections last week. Juckes stated that while sterling has remained relatively resilient amid rising political uncertainty, persistent political headwinds could easily push the pound lower.