GBP USD Exchange Rate Struck by Worsening Risk Sentiment

GBP USD Exchange Rate Climbs Above 1.30

The pound steadied itself against the dollar on Wednesday after four consecutive days of losses, rising above 1.30 and moving away from last week’s lows – not seen since November 2020 – in the process. The UK currency managed to snap its losing streak as investor attention turned to potential policy clues from Bank of England (BoE) officials this week – including Governor Andrew Bailey. Data published last week showed British consumer price inflation rose to 7% in March – a thirty-year high. Investors are eager...
GBP USD Exchange Rate Feels Weight of 40 Year High Inflation

GBP USD Exchange Rate Within Striking Distance of November 2020 Low

The pound ticked 0.1% higher on Tuesday to 1.30389, snapping a three-day losing streak against the dollar as 10-year British government bond yields jumped to their highest since December 2015. Investors remain cautious about the pound’s prospects, however, with the UK currency within touching distance of a November 2020 low of 1.2973 hit last week. Despite British yields extending gains recently, expectations have dampened that the Bank of England (BoE) will match the US Federal Reserve (Fed) in raising interest rates aggressively to curb inflation. Economic data...
GBP USD Exchange Rate: The Week Ahead April 18th

GBP USD Exchange Rate: The Week Ahead April 18th

The pound experienced mixed fortunes against the dollar last week: by Wednesday it had slipped to its lowest level since November 2020 (1.2973), before rebounding above 1.31 for the first time since 5 April following data showing consumer price inflation jumped to the highest since 1981. Interest rate speculation in focus for the pound The Easter bank holiday on Monday means it’s a quiet start to the week in the UK economic calendar. In the absence of economic indicators until Thursday, interest rate speculation will continue to...
GBP USD Exchange Rate Rebounds Above 1.31

GBP USD Exchange Rate Rebounds Above 1.31

The pound shot above 1.31 on Wednesday for the first time since 5 April, partly boosted by a red-hot inflation reading the previous day showing UK consumer price inflation jumped to its highest in 30 years – raising expectations that the Banks of England will continue raising interest rates at its next meeting in May to tackle inflation. This marked a reversal in fortunes for the UK currency, which had dropped to its lowest level against the dollar (1.2973) since November 2020. The UK housing market...
GBP USD Exchange Rate Drops to Lowest Since November 2020

GBP USD Exchange Rate Drops to Lowest Since November 2020

On Wednesday, the pound fell to its lowest level against the dollar (1.2973) since November 2020 as domestic consumer prices jumped to their highest level in 30 years – causing investors to question how aggressive Bank of England (BoE) tightening measures will be. British consumer price inflation accelerated to an annual rate of 7% last month – its highest level since 1992 and up from 6.2% in February – amid a record increase in petrol and diesel prices. Grant Fitzner, Chief Economist at the Office of...
GBP USD Exchange Rate Bounces Off Yet Another Two-Year Low

GBP USD Digests Highest US Inflation Print Since 1981

The pound was marginally lower against the dollar on Tuesday morning, while investors speculated about fresh inflation data from the US. Upbeat unemployment data barely registered on the UK currency’s radar amid the squeeze on living standards and a diminished workforce. UK unemployment fell to its pre-pandemic level at the start of 2022, but the cost-of-living crisis deepened as earnings failed to keep pace with pay despite the record number of vacancies. The jobless rate averaged 3.8% in the three months to February, the Office for National...
GBP USD Sinks to 23-Month Low

GBP USD Shackled by Fed Hawkishness

The pound struggled to make headway against a strengthening dollar on Thursday having bounced off a three-week low the previous day. Addressing UK monetary policy, Bank of England (BoE) Chief Economist Huw Pill said on Thursday that quantitative easing may be the wrong tool to tackle market dysfunction amid red-hot inflation. Pill does not think the BoE will want to repeat the massive additional bond purchases announced at the start of the pandemic, which was partially made to calm bond market turmoil. Pill said: "Maybe we were...
GBP USD Exchange Rate Poised for Central Bank Rate Decisions

GBP USD Exchange Rate: The Week Ahead April 11th

The Pound to Dollar pair remained tepid at the start of last week, maintaining its course through the 1.31 range. By Tuesday, however, rate-induced dollar strength had begun to weigh on the pound, causing it to drop to a three-week low. The divergence in the policy outlook between the Federal Reserve (Fed) and the Bank of England (BoE) was exacerbated by central bank rhetoric throughout the week: Fed officials banged the drum for a more aggressive pace of tightening, while their BoE counterparts expressed caution about...
GBP USD Shackled by Fed Hawkishness

GBP USD Shackled by Fed Hawkishness

The Pound to Dollar rate struggled to make headway on Thursday having bounced off a three-week low the previous day. Addressing UK monetary policy, Bank of England (BoE) Chief Economist Huw Pill said on Thursday that quantitative easing may be the wrong tool to tackle market dysfunction amid red-hot inflation. Pill does not think the BoE will want to repeat the massive additional bond purchases announced at the start of the pandemic, which was partially made to calm bond market turmoil. Pill said: "Maybe we were just...
GBP USD Exchange Rate Sinks Below 1.27

GBP USD Dragged Lower by Hawkish Fed Comments

The Pound to Dollar tumbled below 1.31 on Wednesday – a near three week low – after the dollar firmed ahead of Wednesday’s Federal Reserve (Fed) March meeting minutes. The UK currency was boosted on Tuesday by strong services PMI data – and it was the construction sector’s turn to give it a much-needed lift on Wednesday despite inflationary pressures. The S&P Global/CIPS construction PMI printed at 59.1, in line with February and comfortably above the 50-mark showing stagnation. Economists were expecting a drop to 57.8. S&P...