Home > Resource Hub > Daily Market News > Dollar continues to lose against the Pound

Dollar continues to lose against the Pound

Dollar continues to lose against the Pound

Sterling climbed to the highest level in almost three months against the US dollar ahead of BOE minutes. With BoE seeing a flat economy output in the near term with inflation probably exceeding 2% in the next year or so, the MPC decided to leave their bond-purchase program on hold this month and keep its main interest rate at a record-low 0.5% and its bond purchases at 375 billion pounds as widely expected.

Meanwhile, world shares hit 17-month highs and the euro surged on Wednesday on hopes that U.S. politicians will reach a budget deal and that further monetary stimulus will come from Japan. European shares extended their recent rally in early trading with the FTSEuro first 300 index near an 18-month high ahead of the German IFO survey, which is likely to point to a gradual improvement in business conditions for December.

On the FX market, the GBP currency has gained against most others in today’s European session, falling slightly short of September highs of 1.6258. The recovery in the currency was assisted by sovereign demand into year-end; however resistance provided by Asian sovereign names offering at 1.6230 prevented the pair from breaking to further multi-month highs. The UK inflation report confirmed expectations with CPI Y/Y at 2.7%, giving participants little room to speculate toward future BoE policy. With the US session coming underway, the USD remained lower, allowing both GBP/USD to trade at new multi-year highs of 1.6271 in the final hours of the session as a touted option barrier is erased at 1.6250. In tomorrow’s session, the Bank of England’s minutes at 0930GMT will draw focus, ahead of retail sales figures on Thursday, and lastly the final GDP reading for Q3 on Friday.

Currency UK will offer you the best exchange rates available and ensure that your subsequent international transfers are handled as quickly and as efficiently as possible.

Do you want to earn some extra money? Then you can profit from our affiliate programby referring a company or friend that may benefit from our services and earn a commission in return. Contact us now on +44 (0)20 7738 0777 or click here.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.