GBP USD Exchange Rate Struck by Worsening Risk Sentiment

GBP USD Exchange Rate Remains Static

The pound remained rangebound against the dollar on Wednesday as it meandered its way through the 1.23 range. The UK currency has been shackled by reduced bets on overly hawkish action from Bank of England (BoE) rate-setters and growing uncertainty around the British economic outlook. Money markets are currently pricing in around 105 basis points (bps) of BoE rate rises by the end of the year, down from 120 bps late last week and around 145 bps at the end of last month. US inflation rate slows...
GBP USD Exchange Rate Steadies Above Near Two-Year Low

GBP USD Exchange Rate Steadies Above Near Two-Year Low

The pound shifted from reverse into neutral on Tuesday, having slipped to a fresh multi-month low against the dollar the previous day on signs that economic weakness will force the Bank of England (BoE) to slow its interest-rate hiking cycle. The UK currency traversed the 1.23 range, just above a low of 1.2262 reached on Monday – its lowest level since June 2020. This represented a modicum of stability for the embattled pound following a testing couple of weeks that has seen it stumble from one...
GBP USD Exchange Rate Bounces Off Yet Another Two-Year Low

GBP USD Exchange Rate Bounces Off Yet Another Two-Year Low

The pound extended its losing streak against the dollar on Monday as recession fears and the fallout from the Bank of England’s (BoE) cautions rate hike rippled into the new week. This caused the UK currency to slip to yet another two-year low – an almost daily occurrence of late – before steadying itself and scrambling out of the 1.22 range. The pound’s downward spiral was accelerated last week after the BoE raised borrowing costs by a further 25 basis points but warned that the UK...
GBP USD Sinks to 23-Month Low

GBP USD Sinks to 23-Month Low

The pound plummeted to its lowest level since July 2020 against the dollar on Thursday after the Bank of England (BoE) warned of a potential recession. The UK currency was set for its biggest daily drop since the onset of the pandemic after it fell off a cliff into the 1.23 range. Bank of England rate-setters met expectations by voting for a fourth consecutive rate rise since December, pushing borrowing costs up to 1% from 0.75% – their highest level since 2009. However, they warned that...
GBP USD Exchange Rate Poised for Central Bank Rate Decisions

GBP USD Exchange Rate Poised for Central Bank Rate Decisions

The pound slipped perilously close to its lowest level in 21 months on Wednesday ahead of central bank meetings on both sides of the Atlantic, before climbing back into the 1.25 range. The Bank of England’s (BoE) Monetary Policy Committee announces the result of its latest interest rate vote on Thursday, with rate-setters expected to hike borrowing costs for the fourth consecutive meeting – which would mark the first such run in 25 years. Pressure has been applied to the pound recently by expectations that the...
GBP USD Exchange Rate Edges Away From 21-Month Lows

GBP USD Exchange Rate Edges Away From 21-Month Lows

The pound moved away from 21-month lows against the dollar on Tuesday after slipping back into the 1.24 range at the start of the week. It had been fettered by dollar strength on Monday ahead of both Federal Reserve and Bank of England (BoE) monetary policy meetings this week – but rose above 1.25 the following day compared with a multi-month low of 1.2412 hit last week. The BoE gathering of rate-setters is expected to produce a 25 basis points (bps) interest rate hike on Thursday. In...
GBP USD Exchange Rate Slumps to 21-Month Low

GBP USD Exchange Rate Slumps to 21-Month Low

The pound’s week went from bad to worse on Wednesday after it slumped to a 21-month low against the dollar. GBP USD slipped into 1.25 territory for the first time since July 2020 as storm clouds continue to gather over Britain's economy and government borrowing exceeded expectations – conditions that combined to dampen the Bank of England's (BoE) policy tightening narrative. The subsequent trend in money markets this week has been to scale back bets on the size of BoE rate hikes: last Friday, 160 basis...
GBP USD Exchange Rate Sinks Below 1.27

GBP USD Exchange Rate Sinks Below 1.27

The pound’s recent demise entered new depths on Tuesday after it sunk into the 1.26 range against a broadly firm dollar for the first time since July 2020. Concerns about Britain's economic outlook deepened following the release of government debt numbers and mounting fears that Covid-19 restrictions in China will dent the global economy. Data from the Office for National Statistics showed that British government borrowing during the 2021/22 financial year was almost 20% higher than the consensus. The figures highlighted the challenge facing chancellor Rishi Sunak,...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

GBP USD Exchange Rate Plunges to Lowest Since September 2020

The pound was stuck in reverse at the start of the week, moving to its lowest level since September 2020 against a strengthening dollar. The UK currency’s retreat into the 1.27 range was compounded by diminishing interest rate expectations after money markets reduced their bets on future monetary policy tightening from the Bank of England (BoE). Money markets are currently pricing around 150 basis points of BoE rate rises by the end of the year, including more than 25 basis points at the May policy meeting...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

GBP USD Exchange Rate: The Week Ahead April 25th

The pound was dealt a volley of blows on Friday by downbeat data, causing it to tumble into the 1.28 range against the dollar – its weakest level since October 2020. Declining high street sales, plunging consumer confidence and rapidly cooling business activity painted a bleak picture of the UK economy – piling pressure on the Bank of England (BoE) to tackle inflation without triggering a recession. This data-induced slump rounded off a relatively inert week for the GBP USD pair, during which BoE governor Andrew...