Daily Currency Update
UK GDP and growth figures had been expected to remain stuck. At its August policy meeting, the Bank of England did not forecast a recession for the United Kingdom while raising rates by 25 basis points to 5.25%. The BoE’s non-committal stance on the future interest rate path disappointed Pound Sterling. However, a stronger-than-expected GDP print is likely to rekindle the positive BoE interest rate outlook. Speaking at the post-meeting press conference, BoE Governor Andrew Bailey said, "the economy is more resilient, I would not use words like 'pain' to describe policy impact." "We hope we can deliver the path we expect with no recession, we will have to see”.
Key Movers
The USD saw a sharp weakening yesterday, as the US CPI and Core CPI undershot expectations. The US Dollar Index fails to extend the late Thursday’s rebound from the lowest level in a week as a slew of policymakers from the Federal Reserve conveyed the US central bank’s hard-earned victory on inflation. Even so, their tones appeared less convincing and joined the risk-negative concerns about China to limit the Dollar fall.
Expected Ranges
- GBP/USD: 1.26659 - 1.27231 ▲
- GBP/EUR: 1.15348 - 1.15659 ▲
- GBP/AUD: 1.94168 - 1.95001 ▲
- EUR/USD: 1.09796 - 1.10021 ▼