GBP USD Slide Lower Gathers Momentum

GBP USD Slide Lower Gathers Momentum

The pound remained under the pump on Wednesday, slipping to a fresh 11-month low against the dollar as expectations for a rate hike supported the US currency. Investors are eager for signals – from the Bank of England and the economy – that will indicate whether the central bank will raise interest rates at its December meeting. Also on their radar is the impact of the new wave of Covid-19 cases across the continent and the announcement of fresh lockdowns. Having sparked further rate hike uncertainty over...
GBP USD Touches Lowest Level This Year

GBP USD Touches Lowest Level This Year

Investors took an increasingly negative view on the pound on Tuesday against a backdrop of domestic and international challenges – causing it to slump to its lowest level against the dollar this year: 1.3344. Doubts at home about whether the Bank of England will hike interest rates in December – having shocked markets this month by leaving its benchmark rate at a record low 0.1% – are being compounded by Brexit concerns, new Covid-19 restrictions across Europe and dollar strength. While investors still largely expect a...
GBP USD Slips Lower After Powell Secures Second Term as Fed Chair

GBP USD Slips Lower After Powell Secures Second Term as Fed Chair

The pound slipped below the 1.34 benchmark against the dollar on Monday, which rallied following Jerome Powell’s nomination for a second four-year term as the Federal Reserve Chair. President Joe Biden nominated Powell to remain at the helm of the US central bank, ending speculation over whether he would put forward Democrat, Lael Brainard who was nominated as Vice-chair instead. Following the announcement, Mr Biden said: "While there's still more to be done, we've made remarkable progress over the last 10 months in getting Americans back...
GBP USD Weighed Down by Omicron-Fuelled Rate Concerns

GBP USD Exchange Rate: The Week Ahead November 22nd

The pound remained supported on Friday morning having touched a one week high (1.3512) against the dollar the previous day. Official data showing early Christmas shopping helped UK retail sales to rebound last month came hot on the heels of news that UK employment rose between September and October despite the end of the furlough scheme – reinforcing the case for the Bank of England (BoE) to raise interest rates as early as next month to rein in inflation. GBP USD hit a speed bump...
GBP USD Stimulated by UK Retail Sales Rise

GBP USD Stimulated by UK Retail Sales Rise

The pound clung onto its gains from the previous day on Thursday, hitting a fresh one-week high against the dollar. A dry UK economic calendar meant the UK currency remained propped up by data sets released earlier in the week. The GBP USD rate briefly touched 1.35 as investor expectations grow that the Bank of England (BoE) will act swiftly to combat inflation by hiking interest rates, which would in turn support the pound. The UK currency has been bolstered this week amid soaring inflation and...
GBP USD Losing Streak Extended by Fed Policy Expectations

GBP USD Rises to One Week High on UK Inflation Data

The pound jumped to within touching distance of the 1.35 resistance level against the dollar on Wednesday – a one week high – after data showed British inflation hit a 10-year high in October, bolstering expectations of a rate hike as soon as next month. Consumer prices increased by 4.2% in annual terms in October, jumping from a 3.1% increase in September, the Office for National Statistics said on Wednesday. Both the Bank of England (BoE) and economists had forecast a reading of 3.9%. The stronger...
GBP USD Buoyed by Upbeat UK Jobs Data

GBP USD Buoyed by Upbeat UK Jobs Data

The pound tiptoed higher on Monday, as investors focused on the Article 16 impasse and the likelihood of the Bank of England (BoE) raising interest rates in December. Brussels and London have been at loggerheads in recent weeks after Britain, discontented with the Brexit withdrawal agreement it signed last year, threatened to trigger Article 16 – an emergency clause of the Northern Ireland Protocol – potentially leading to a trade war. Brexit-fuelled tensions are creating headwinds for the pound, but until something significant occurs, such as...
GBP USD Exchange Rate: The Week Ahead November 15th

GBP USD Exchange Rate: The Week Ahead November 15th

The pound – which is still reeling from the Bank of England’s (BoE) failure to hike interest rates – plunged to its lowest level against the dollar this calendar year on Friday. Driving its decline was fresh data showing the UK economic recovery is stalling and a stronger dollar, which rallied in the wake of surging US inflation – a scenario that’s strengthening the prospect of the US Federal Reserve raising interest rates. The GBP USD rate dipped as deep as 1.335 – its lowest...
GBP USD Touches Lowest Level This Year

GBP USD Takes a Nosedive

The pound slid to 1.34 against the dollar on Wednesday, having touched 1.36 the previous day. In the absence of data from the UK economy, the UK currency was on the defensive amid fresh Article 16 rhetoric. Leo Varadkar issued a warning to British prime minister Boris Johnson as concerns mount in Dublin and Brussels of an imminent move to suspend parts of the agreement. Ireland's deputy prime told the UK that it will not achieve a better deal if it triggers article 16 of...
GBP USD Exchange Rate: The Week Ahead November 15th

GBP USD Treads Water Ahead of US Inflation Data

The pound briefly touched 1.36 against the dollar on Tuesday as it retraced its losses from last week, before slipping back to the 1.35 mid-range. Despite the surprise decision by the Bank of England (BoE) on Thursday to leave interest rates on hold at a rock bottom 0.1%, speculation is rife that the central bank will hike rates either next month or early in 2022, which is providing short-term support for the UK currency. BoE Governor Andrew Bailey fuelled rate speculation on Monday during a question-and-answer...