GBP at a 3-week high against the USD
Tuesday 14 March, 2023
Daily Currency UpdateThe pound is at a 3-week high against the US dollar, hovering around its strongest level since February 21st and remaining above an over three-month low of $1.18 touched on March 8th. Investors dumped the US dollar on hopes the Federal Reserve might take a less aggressive approach to monetary policy going forward after US authorities announced a series of measures to shore up confidence in the banking system following the Silicon Valley Bank collapse. The Bank of England is expected to increase interest rates by a further 25 basis points this month, an 11th consecutive rate hike, before ending the current tightening cycle.
Key MoversThe US dollar languished near a multi-week low on Tuesday as fears of a broader systemic crisis following the collapse of US tech-focused lender SVB left traders speculating that the Federal Reserve could pause its aggressive rate-hiking cycle or perhaps consider making rate cuts. The collapse of SVB - the largest bank failure since the 2008 financial crisis - has raised questions about whether the Fed's aggressive rate increases have exposed cracks among key players within one of the world's largest and most heavily interconnected banking sectors. Over the weekend, U.S. authorities launched emergency measures in response to the debacle, in a bid to shore up banking confidence.
- GBP/USD: 1.2085 - 1.2155 ▲
- GBP/EUR: 1.1325 - 1.1385 ▲
- EUR/USD: 1.0665 - 1.0735 ▲