Pound hits a 7 month low
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- June 18, 2018
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Sterling held near seven-month lows against the US Dollar as strong U.S. data and a hawkish Federal Reserve prompted investors to buy the greenback, while the Bank of England is expected to strike a cautious note at a review next week after some weak data.
Focus shifts to the Bank of England’s meeting on Thursday and Prime Minister Theresa May’s ongoing efforts to convince her colleagues about her plans for Brexit.
May saw off a parliamentary rebellion this week over parliament’s role in the Brexit process and ensured her government’s all-important EU withdrawal bill passed.
Her Conservative Party remains divided over how much of a say parliament should have on the final terms of a deal with the EU. That deal, which Britain and the EU need to agree before Britain’s exit in March, will define their future relationship.
Markets expect the BoE to keep rates on hold this week but will be looking for any signs that the central bank is more comfortable with how the economy is performing after a difficult first quarter.
Expectations are that the Bank of England to raise interest rates one more time before the end of 2018 with most analysts leaning towards a hike in August.
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