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Sterling Regains Lost Ground

Sterling Regains Lost Ground

A rejuvenated bid has pushed the British Pound above its post-Bank of England lows as investors lock sights on a February rate rise. Investors are buying Sterling into today’s session judging that the rapid repricing for future interest rate rises at the Bank of England was nearing completion and that current exchange rates are more in keeping with an expectation for a February hike.

As trading gets underway this Tuesday, the slightly firmer tone to sterling over the past 24 hours is reflected in GBP/EUR edging back down towards the midpoint of the 1.1650-1.1750 trading band. Meanwhile, GBP/USD has moved back up into 1.3580 territory. Elsewhere the, EUR/USD starts this morning’s session around the 1.1585 mark. 

Today’s macro diary is lacking in top tier releases with the only release of note in Europe is the German ZEW survey for Nov. Meanwhile, both Fed Chair Powell and BoE Governor Andrew Bailey will both be speaking at the same online conference. The speeches however, are not expected to provide any new policy insight.

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