Weekly high for GBP/USD
Daily Currency Update
The pound strengthened against the US dollar this week as investors anticipate potential further interest rate hikes by the Bank of England in September. On Wednesday it jumped from around 1.2619 to the higher market rate of 1.2749.Earlier today, the Bank of England's Huw Pill said that the Monetary Policy Committee is seeking a lasting return to 2% inflation while noting that core inflation and wages remain too high. GBPUSD did correct downwards following Pill's comments but remains up on the week.
Markets are pricing in a 0.25% increase in interest rates from the BoE on the 21st September. This will be the 15th consecutive hike from the central bank.
Key Movers
Later during the early North American trading session, the release of the US Core PCE Price Index will be watched closely. This is the Federal Reserve’s preferred inflation gauge and could influence whether the US Dollar price will devalue or improve against the pound.Expected Ranges
- GBP/USD: 1.2708 - 1.2733 ▲
- GBP/EUR: 1.1629 - 1.1653 ▲
- GBP/AUD: 1.9523 - 1.9651 ▲
- EUR/USD: 1.0910 - 1.0938 ▼