Blog


09/08/2021 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • August 9, 2021
  • No Comments

The pound slipped slightly in early trading against the US Dollar but was still close to its strongest versus the euro since February 2020, as investors focused on the possible pace of monetary policy tightening after the Bank of England meeting last week.

In recent weeks, sterling has outperformed as COVID-19 cases have fallen and high vaccination rates have allowed the British government to lift most social-distancing rules.

The pound was down 0.1% versus the dollar, at $1.38645. The dollar had hit a four-month high against the euro during Asian trading, extending Friday’s gains after a strong U.S. jobs report prompted investors to bring forward their bets on the Federal Reserve tapering its pandemic-era stimulus.

On Thursday, the Bank of England’s monetary policy committee voted 7-1 to maintain the pace of its government bond-buying, even though it expects inflation to jump to 4.0% around the end of the year. But it also said that “some modest tightening” of monetary policy over its three-year forecast period was likely to be necessary.

Elsewhere, British business minister Kwasi Kwarteng said that finance minister Rishi Sunak was doing a fantastic job after a report in the Sunday Times that Prime Minister Boris Johnson could demote him.

Sunak is seen as one of the rising stars in the Tory party and a safe pair of hands at the Treasury, such that any demotion could briefly hit GBP.

The UK’s preliminary GDP reading for the second quarter of the year is due on Thursday.

GBP/EUR 1.1803 GBP/USD 1.3878 GBP/AED 5.0896

GBP/AUD 1.8898 GBP/CHF 1.2722 GBP/CAD 1.7414

GBP/NZD 1.9997 EUR/USD 1.1765 GBP/ZAR 20.197

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited, Equals Connect Limited and Ebury Partners UK Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers