Sterling/Dollar Traded Above 1.27

Sterling rose to trade above $1.27 for the first time in seven weeks against the dollar, as investors awaited a Bank of England quarterly report that is expected to upgrade its growth and inflation forecasts.

The central bank will probably try to avoid adding to speculation about a first interest rate hike in nearly a decade, even as it acknowledges the resilience of Britain’s economy since last year’s vote to leave the European Union.

With Britain, having outpaced the world’s other big rich economies last year, the BoE is expected to raise its 2017 growth forecast for the second time in three months.

Inflation is already set to overshoot the Bank’s 2 percent target in the coming months, having been boosted by a more than 10 percent fall in sterling since the EU referendum.

But while financial markets are pricing in a roughly 50-50 chance of a rate hike by the BoE this year, most economists say it probably will not happen until mid-2019, once Britain has wrapped up its Brexit negotiations and left the EU.

Rate decision followed by Inflation report and Mark Carney’s speech is due at 1200 GMT.

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Your email address will not be published.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