Decreasing Brent crude prices have alleviated inflation concerns in the UK, leading to a shift in expectations regarding Bank of England rate hikes, now anticipated for 2027. Markets are pricing in minimal tightening for September, which maintains economists’ confidence that the Bank of England will keep rates at 3.75%. Foreign exchange traders are anticipating Federal … Read more
GBP/USD has seen a decline as the US Dollar maintains its strength, following July’s PCE inflation rate, which accelerated to 0.2%, surpassing market expectations. Oil prices declined following an agreement between Iran and Oman regarding the Strait of Hormuz, alleviating short-term inflation concerns. Pound sentiment weakened following disappointing CBI business data and a shift in … Read more
GBP/USD drifts lower to around 1.3625 in Wednesday’s early European session. Traders brace for the release of US PCE data for July later on Wednesday. Expectations of a rate increase by the BoE this year could underpin the British Pound. The GBP/USD pair declines to near 1.3625 during the early European trading hours on Wednesday. … Read more
GBP/USD is currently positioned at 1.3627 on Tuesday. In the concluding complete week of August, the pair persists close to its peak level since the middle of February. Sterling is experiencing support due to the weakness of the dollar, a consequence of the US Treasury’s surprising move to at least double its purchases of long-term … Read more
GBP/USD strengthens to approximately 1.3645 in the early Asian session on Friday. A disappointing US jobs report and softer inflation data have tempered expectations for a more stringent monetary policy from the Federal Reserve. The Bank of England is anticipated to maintain interest rates for the rest of the year. The GBP/USD pair exhibits resilience … Read more
GBP/USD drifts higher to near 1.3550 in Tuesday’s early Asian session. Traders anticipate a mere 35% probability of a rate increase during the Federal Reserve’s September meeting. The UK jobs data is set to take center stage later on Tuesday. The GBP/USD pair is experiencing an uptick, reaching approximately 1.3550 in the early hours of … Read more
GBP/USD is experiencing modest gains, hovering around 1.3500 during the early hours of Thursday’s Asian session. US CPI inflation exhibited modest levels in July, leading to a reduction in expectations for a rate hike by the Federal Reserve in September. Traders are poised for the release of the UK Q2 GDP and US PPI reports … Read more
Markets exhibit a divergence of opinions regarding a potential Fed rate hike in September, particularly in anticipation of significant inflation data releases. Rising oil prices and shifting diplomatic signals over the Strait of Hormuz contribute to increased market volatility. Scotiabank observes that the recent fluctuations in the Pound are predominantly influenced by market sentiment, closely … Read more
GBP/USD begins the week of 10–14 August positioned around 1.3500, marking its peak since 15 July. Sterling is capitalising on the momentum generated by a significant drop in the dollar, triggered by a disappointing US labour market report that has diminished expectations for a Federal Reserve rate increase in September. Further support has emerged from … Read more
Scotiabank analysts caution that the diminishing yield spreads between the UK and US are undermining the fundamental support for the British pound. Rising oil prices have rekindled concerns regarding stagflation in the UK, presenting a complex challenge for the Bank of England. Safe-haven demand stemming from the escalating tensions in the Strait of Hormuz has … Read more
