GBPUSD rates hit 15 month high whilst GBPEUR rates hit 11 month high

Pound hits recent highs against both the Euro and US Dollar

The Pound Euro exchange rate has continued to challenge 11 month highs and has also improved against the US Dollar.

The US Dollar has started to weaken recently against a number of major currencies as inflation appears to be slowing down in the world’s leading economy.

The US Federal Reserve was one of the first central bank’s to rapidly increase interest rates and their policy appears to have now worked.

The policy of hiking interest rates is often used to combat rising inflation by a central bank.

US inflation has started to fall which gives credibility to Fed’s decision to hike rates by so much in recent times.

It has been suggested that the US Federal Reserve will soon end its interest rate cycle.

This has caused GBPUSD exchange rate to hit a 15 month high during the course of this week.

In the meantime it is fully expected that we’ll see the Bank of England continue  to raise interest rates.

We have already seen 13 consecutive interest rate hikes with rates the highest in 14 years.

At the last meeting 7 of the 9 members voted for a rate hike of 0.5%. Therefore, there is clearly an appetite for further interest rate hikes.

With interest rates so high in the UK this means it becomes more attractive to hold Pounds. Therefore, this is another reason for Sterling’s positive gains recently against both the Euro and the US Dollar.

If you would like a free quote when exchanging currency then feel free to contact me directly.

I have worked for one of the UK’s leading currency brokers since 2003 and I am confident that we can offer a difference when buying or selling currency.

Email me directly and I look forward to hearing from you Tom Holian [email protected]