GBP USD Exchange Rate Nudges Higher on Rate Hike Expectations 

GBP USD Exchange Rate: The Week Ahead August 08th  

Two straight weeks of increases for GBP USD ended abruptly last week. The pair's steady decline against the dollar was punctuated by significant activity on both sides of the Atlantic.  On Thursday, the Bank of England (BoE) pushed interest rates up by 50 basis points (bps) – the most significant hike in 27 years. Despite this acceleration, the UK central bank's rate-hiking pace was slower than the Federal Reserve's, making it hard for the pound to benefit from policy tightening.  The BoE's gloomy economic forecast following the rate...
GBP USD Exchange Rate Nudges Higher Ahead of BoE Announcement 

GBP USD Exchange Rate Nudges Higher Ahead of BoE Announcement 

The pound was up on Wednesday against a weaker dollar ahead of the Bank of England’s monetary policy meeting. The central bank will likely hike borrowing costs again – this time at a quicker pace.  Money markets are currently pricing in more than a 90% chance of a 50 basis point rate hike – double the size of the previous six consecutive rises – at the gathering of policymakers to address record-high inflation.  Survey data published on Wednesday confirmed activity in Britain’s services sector expanded last...
GBP USD Exchange Rate Weakens as Investors Seek Safe-Haven Currencies 

GBP USD Exchange Rate Weakens as Investors Seek Safe-Haven Currencies 

The pound’s sharp rise versus the dollar was blunted on Tuesday by reduced risk appetite amid escalating US-China tensions over Taiwan.  Investors are focused on the Bank of England (BoE) policy meeting this week and a potential quickening of the central bank’s interest rate hiking cycle to rein in runaway inflation without exacerbating an economic slowdown.  The UK currency – which had touched a more than one-month high on Monday – slipped lower into the 1.22 range the following day.   The BoE announces its monetary policy decision...
GBP USD Exchange Rate Slides after GDP Data Shows British Economy Shrank in June 

GBP USD Exchange Rate: The Month Ahead August 

The pound ended July about 0.1% down against the dollar, extending a disappointing run this year, posting just one month of marginal gains in May. Since January, the UK currency racked up a 10.1% loss amid a faltering economy, soaring interest rates and domestic political uncertainty – a trend that will likely continue.  It was a month of two halves of contrasting fortune for GBP USD. By the middle of July, the pair pulled below 1.18, its weakest since March 2020, due to regular bouts...
GBP USD Exchange Rate: The Month Ahead September 

GBP USD Exchange Rate: The Week Ahead August 01st  

When the pound dipped into the 1.19 range against the dollar on Monday, as the currency struggles for impetus during a data-light week in the UK. After edging back into the 1.20 range, the pound remained largely rangebound before events on the other side of the Atlantic – and subsequent dollar weakness – woke it from its slumber.  On Wednesday, the US Federal Reserve announced another three-quarter percentage point hike in its benchmark interest rates – the second supersized increase in just over a month.  Analysts expected a rate...
GBP USD Exchange Rate Hits One-Month High

GBP USD Exchange Rate Hits One-Month High

The pound climbed above the 1.22 benchmark against the dollar on Friday for the first time since the end of June as a risk-on mood in markets continued to drive riskier currencies. It’s been a data-light week in the UK, so Friday’s consumer credit print for June attracted added investor attention. Consumer lending increased in Britain last month at its fastest rate in over three years in the face of the cost-of-living crisis. Meanwhile, the number of mortgage approvals dropped to the lowest level in two...
GBP USD Exchange Rate Rises Sharply Following Fed Rate Hike 

GBP USD Exchange Rate Rises Sharply Following Fed Rate Hike 

The pound crept towards a one-month high against the dollar on Thursday as a risk-on mood returned to markets after the US Federal Reserve issued its interest rate outlook.  GBP USD rose sharply on Wednesday above 1.21 after the US central bank maintained the pace of its policy tightening cycle before inching higher the next day.  An absence of economic data, a protracted Conservative Party leadership contest, and a fallow month for Bank of England (BoE) policy meetings left the pound short of domestic drivers in July.  Fed...
GBP USD Exchange Rate Gains Subdued by Soft Data 

GBP USD Exchange Rate Gains Subdued by Soft Data 

The pound floated higher against the dollar on Wednesday, its gains tethered by yet more soft economic indicators, underscoring economic issues.  Confidence among British employers about hiring and investment is at its lowest since the depths of the pandemic due to decades-high inflation and an acute shortage of workers; a survey showed on Wednesday.  The Recruitment and Employment Confederation’s (REC) measure of hiring and investment confidence dropped to -13 in the three months to June – the lowest reading in two years and down from -7...
GBP AUD Slips After Australian Retail Sales Rise 

GBP USD Exchange Rate Tripped Up by Soft UK Retail Data

The pound touched its highest level against the dollar since early July on Tuesday, as investors weighed up the chances of a 50 basis points (bps) interest rate hike by the Bank of England next month amid a worsening economic outlook. Risk sentiment tailwinds from Monday also provided a lift. The UK currency’s move away from a March 2020 low of below 1.18 revisited this month was short-lived. However, political uncertainty, soft data, and a shift in risk appetite caused it to tumble to 1.196. Morale among...
GBP USD Exchange Rate Rallies Amid Improving Risk Appetite

GBP USD Exchange Rate Rallies Amid Improving Risk Appetite

The pound hovered around the 1.20 benchmark against the dollar on Monday morning after dismal data from the end of last week perpetuated concerns about slowing UK economic growth. Without any new data to provide it with direction, the UK currency remained stuck in neutral.   Britain’s businesses posted their slowest pace of growth last month since February 2021. Meanwhile, inflation pressures eased, according to an industry survey.  The UK currency eventually rallied as risk appetite returned to currency markets, boosting riskier currencies like the pound.  British Foreign Secretary...