GBP/USD: Returns to Well-Known Territory

Pound Sterling Surges Amid DOJ Probe into Jerome Powell

On Monday, the British pound experienced a notable upswing following news that the Department of Justice had initiated an investigation involving Jerome Powell. Despite this development, the currency continues to face familiar resistance levels. The market’s initial reaction stemmed from concerns over the DOJ’s scrutiny of Federal Reserve Chairman Powell, which introduced a sense of unease among investors. Political involvement with key financial figures often unsettles the markets. Nevertheless, the broader consensus is that the outcome of the investigation may have little practical impact, as Powell is unlikely to remain in his role by the time any significant action is taken. This perspective appears to be gaining traction among market participants.