Blog


12/10/2022 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • October 12, 2022
  • No Comments

Sterling slipped to a new two-week trough after Bank of England Governor Andrew Bailey reiterated that the central bank would end its emergency bond-buying program on Friday and told pension fund managers to finish rebalancing their positions within that time frame.

However, the pound rebounded slightly after a report in the Financial Times said the BoE has signalled privately to lenders that it’s prepared to prolong its bond purchases.

Sterling which earlier touched $1.0925, marking a fresh low since Sept. 29, bounced 0.4% to $1.1008 after the FT report.

Gilt yields had soared earlier on Tuesday following the BoE governor’s comments, lifting yields in the U.S. and elsewhere.

GBP remains at risk of sudden drops because of uncertainty about government debt sustainability and the dislocation in UK pension (superannuation) funds that has spilled over into UK government bond market.

Worries that continued aggressive policy tightening by the Fed and most of its peers will lead the global economy into recession have been a major driver of risk sentiment over recent months.

The International Monetary Fund warned on Tuesday that countries representing a third of world output could be in recession next year, even as it urged central banks to keep up their fight against inflation.

Recent strong U.S. labour market reports have scuppered hopes among some market participants that Fed policymakers may slow the pace of rate hikes into year-end.

The U.S. consumer price report, due on Thursday, could be a flashpoint for currency volatility, and a sharp move higher in dollar-yen could become a trigger for intervention.

GBP/EUR 1.11382 GBP/USD 1.1040 GBP/AED 4.0602
GBP/AUD 1.7631  GBP/CHF 1.0990 GBP/CAD 1.5240
GBP/NZD 1.9770  EUR/USD 0.9696 GBP/ZAR 20.055

Leave a Reply

Your email address will not be published.

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 and Equals Connect 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). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. | Terms and Conditions | Privacy Statement | Careers