Pound looks to $1.3500

14 September, 2017

Pound looks to $1.3500

The British pound continues to surge today against its US counterpart, following on from yesterday’s gains on the back of booming inflation figures which has raised speculation that an interest rate hike from the Bank of England could come any time now.

At 6.51am (GMT) the British currency was trading at $1.3303, up from $1.3287 in yesterday’s close.

The pound has now jumped nearly 1.5 cents in the last 2 trading sessions on the back of CPI figures from the UK, which hit the market at 2.9 percent against analysts’ expectations for a figure of 2.9 percent and up from 2.6 percent last month.

The news sets the stage for a big show on Thursday when the Bank of England sits down to announce their latest interest rate decision, and although no changes in rates are expected, the mood to lift rates in the following months amongst BOE board members may increase which may drive the pound higher.

“While we doubt that a rate rise is on the cards for later this week, we believe that there is a chance that the vote split could signal a hawkish shift at the bank, with the potential for Chief Economist Andy Haldane to vote for a rate hike,” said Kathleen Brooks, research director at City Index,

Today’s wage growth figures released from the UK may also create some volatility in the pound as they are also connected with rate hikes though it seems the pound will hold onto its gains until Thursday’s rate decision.

“Tomorrow’s labor market data, especially wages, could either challenge or confirm the move we’ve seen today,” he said. “However, ultimately the real decider for sterling is likely to be how much tolerance for inflation the BOE signals on Thursday” said Ranko Berich, head of market analysis at Monex Europe.


Source link  
Gold looks to tax reforms

The gold price is slightly lower in today’s European trading session although it is still hovering around 1 month highs as fears grow that US President...

Gold set to go higher

The gold price has moved significantly higher over the last 4 trading sessions on the back of US president Donald Trump’s trip to Asia as well as political turmoil for the president back home...

Euro set to weaken further

The Euro is under further pressure today against its US counterpart after suffering heavy losses on Friday on the back of strong data from the US...


Gold awaits next Fed chair

The gold price is heading for a 2nd day of gains as the market awaits US president Donald Trump’s choice for the next candidate to run the US Federal...

Further supply cuts key to oil price

Brent oil is now sitting comfortably above the $60, making its highest level in more than 2 years on the back of a deal between...

Pound may tumble after rate decision

The British pound is trading higher again today against its US counterpart, following on from yesterday’s solid performance but some warn...


Will the BOE hike rates?

The British pound is under pressure in today’s trading after some analysts and a Bank of England board member threw into question

Double bottom may save gold

The gold price is under further pressure today as investors continue to pile into the US dollar on the back of proposed tax breaks by US president...

Oil to remain flat

The oil price is set to remain stagnant over the next few years according to some analysts with the outside possibility that the price could tumble if Opec members fail to cooperate...

  


Share: