Pound surges, rate hike may follow

21 September, 2018

The British pound is powering ahead today against its US counterpart as more positive data raises speculation that a rate hike from the Bank of England again this year is a real possibility.

Retails sales figures from the UK released earlier today hit the market at 0.3 percent which was well above expectations for a figure of  -2.2 and shows that even though the pound has lost a significant amount of purchasing power due to the uncertainty of Brexit, consumers are not afraid to spend.

The news follows on from yesterday’s inflation release, which also beat consensus coming in at 2.7 percent and is well above the BOE’s comfort zone of 2 percent.

A rate hike from the BOE is now firmly back on the table, which was unthinkable as early as last week

“Just a week ago, the prospect of another interest-rate rise in the U.K. sounded distant. Now with CPI at 2.7%, well over the Bank of England’s 2% target, talk of another rise suddenly sounds less outlandish,” said Jacob Deppe, head of trading at online trading platform Infinox

The Bank of England has many things to consider with regards to lifting interest rates such as the property market which has fallen off the rails this year and some believe any further rate hikes may lead to further falls in the real estate sector and this threat will be enough for the BOE to keep rates on hold for the time being.

"Slowing growth in house prices will strengthen the case for the monetary policy committee to hold back from raising the bank rate again within the next six months," said Samuel Tombs from Pantehon Macroeconomics.


Source link  
Gold price has rallied sharply

A declining stock market is always good for gold as investors look for somewhere safe to ride out the uncertainty. Precious metals are seeing buying...

Gold may rally towards years end

After a horror 6 months the gold price has found much needed support over the last 4 weeks and is now sitting above the $1,200 mark and depending...

New tariffs lift US dollar

As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major...


Will the US dollar jump on Thursday?

The US China trade war has now come to the top of the headlines again with US President Donald Trump keen to go ahead with an extra $200 billion...

Big Money is avoiding the pound

Just when we thought that a deal between the European Union and Great Britain was in the making and thus avoiding a hard Brexit, another spanner...

Pound gains on Brexit negotiations

The British pound has surged back through the $1.30 mark after progress made today on Brexit negotiations raised speculation that a deal...


IEA report siks oil

The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...

Gold in the hands of the US dollar

The last 2 months has been extremely painful for those who invested in gold with the precious metal plummeting more than $100 and at the time...

Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...


In the past 24 hours Bitcoin has gained 0.21% and reached $6393.07985752. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.2672% and is now at $1.1357. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 0.85% and is now at $210.527736703. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM87%
3HYCMHYCM86%
4Alfa-ForexAlfa-Forex85%
5FxProFxPro84%
6FIBO GroupFIBO Group83%
7OctaFXOctaFX82%
8HotForexHotForex81%
9FXCMFXCM79%
10AvaTradeAvaTrade76%
  


Share: