GBP USD Exchange Rate Feels Weight of 40 Year High Inflation

GBP USD Exchange Rate Digests Services Sector Data

The Pound to Doller rate consolidated its marginal gains on Tuesday as it continued to traverse the 1.31 range. A note from ING analysts identified the source of the pound’s support: “Money markets are embedding five more UK interest rate hikes by the end of the year, which is likely offering some support to GBP in the background,” Money markets are currently pricing in nearly 140 basis points of cumulative Bank of England (BoE) interest rate rises by the end of the year. The S&P Global/CIPS UK...
GBP USD Exchange Rate Rebounds Above 1.31

GBP USD Remains Stuck in a Tight Range

The pound edged higher against the dollar on Monday as investors remained confident that the Bank of England (BoE) will keep its foot on the rate-setting accelerator, following three consecutive months of hikes. Despite the gentle tailwinds, Pound to Dollar remains stuck in a tight range as it continues to meander through the 1.31 level. Money markets are still pricing the BoE Bank Rate at 2.20% by December, as the central bank grapples with the sharpest cost of living rise since the 1950s – when British...
GBP USD Exchange Rate Jumps to Highest Since 5 May on Firm Jobs Market Figures

GBP USD Exchange Rate: The Week Ahead April 4th

The pound was tripped up by comments by Bank of England (BoE) Governor Andrew Bailey last week, causing it to fall to its lowest level (1.3055) in almost two weeks versus the dollar. Bailey echoed the tone of the central bank’s March interest rate announcement, in which officials softened their policy outlook. When asked about the BoE’s plans, he said: "We have been very cautious on forward guidance language because things are so uncertain." The UK currency rebounded off 1.30 on Tuesday, climbing back into the 1.31...
GBP USD Exchange Rate Steadies Above Near Two-Year Low

GBP USD Exchange Rate: The Month Ahead April

The pound was within striking distance of the 1.35 resistance level against the dollar as March dawned against a backdrop of soaring inflation and the conflict in Ukraine. By the middle of the month, however, the UK currency found itself hovering just above the 1.30 handle – a 16-month low – as investors piled into the safe-haven dollar amid an escalation in the Ukraine war. The pound rebounded off this multi-month low ahead of interest rate announcements on both sides of the Atlantic. The Bank of England...
GBP USD Exchange Rate Bounces Off Yet Another Two-Year Low

GBP USD Rises on Ukraine Peace Talks

The pound gained some traction on Wednesday having slipped to its lowest level (1.3055) in almost two weeks versus the dollar the previous day – climbing to the 1.31 mid-range as the US currency weakened. Bank of England (BoE) Deputy Governor Ben Broadbent had some cautionary words for policymakers on Wednesday, who he said should be clear about how they plan to react to changes in the economy – warning against guidance that could be viewed as promises about future policy action. Speaking at the National...
GBP USD Sinks to 23-Month Low

GBP USD Rises on Ukraine Peace Talks

The pound gained some traction on Wednesday having slipped to its lowest level (1.3055) in almost two weeks versus the dollar the previous day – climbing to the 1.31 mid-range as the US currency weakened. Bank of England (BoE) Deputy Governor Ben Broadbent had some cautionary words for policymakers on Wednesday, who he said should be clear about how they plan to react to changes in the economy – warning against guidance that could be viewed as promises about future policy action. Speaking at the National...
GBP USD Exchange Rate Poised for Central Bank Rate Decisions

GBP USD Slips to Almost Two Week Low

The pound was swimming against the tide on Tuesday having sunk to its lowest level (1.3055) in almost two weeks versus the dollar. The UK currency was languishing just above 1.30 following comments from Bank of England (BoE) governor Andrew Bailey the previous day, who reinforced the central bank's cautious message from its previous policy decision. Bailey said that evidence of an economic slowdown has surfaced, which the central bank expects to weigh on domestically generated inflation. "We expect that this pressure on demand will weigh down...
GBP USD Shackled by Fed Hawkishness

GBP USD Sinks to 12-Day Low

The pound tumbled to a 12-day low against the dollar on Monday as investors focused on monetary policy divergence between Britain and the US. In a speech on Monday morning, Bank of England (BoE) Governor Andrew Bailey echoed the tone of this month’s interest rate announcement, in which officials were more dovish in their outlook.The BoE has been attempting to combat rising inflation through policy tightening, with three consecutive interest rate hikes so far. Speculation has mounted whether the central bank will vote for a further...
GBP USD Exchange Rate Feels Weight of 40 Year High Inflation

GBP USD Exchange Rate: The Week Ahead March 28th

The pound’s largely sluggish performance against the dollar last week was punctuated by a spike in value, followed by a sharp fall. GBP USD was relatively flat at the start of the week before being propelled to its highest level since 4 March on Tuesday ahead of new inflation data and finance minister Rishi Sunak’s Spring Statement. By Wednesday, the pair was within touching distance of the 1.33 resistance level as it held at a three-week high. The latest consumer price index showed UK inflation hit a...
GBP USD Exchange Rate Rebounds Above 1.31

GBP USD Falls Despite Hot CPI Data

The pound fell from within touching distance of 1.33 against the dollar on Wednesday ahead of British finance minister Rishi Sunak’s Spring Statement and as UK consumer prices hit a 30-year high. Consumer price index figures showed inflation rose to 6.2%, up 5.5% in the 12 months to February 2022 – and exceeding the consensus. "Rising inflation remains a significant concern for the economy, squeezing household incomes and increasing cost pressures on retailers," said Helen Dickinson, chief executive of the British Retail Consortium. Mr Sunak delivered his...