Home Daily Commentaries GBP/USD hits 15-month high

GBP/USD hits 15-month high

Daily Currency Update

The pound has hit a 15-month high against the US dollar at $1.2913, the highest level since April 2022.

Data showed pay growth exceeded expectations and investors are anticipating the Bank of England will continue raising interest rates to cool the economy.

Bank of England Governor Andrew Bailey said on Monday that policymakers had to "see the job through" on bringing down inflation, suggesting that rate hikes will have to continue.

Key Movers

The US dollar weakened on Tuesday after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle.

Several Fed officials said on Monday the central bank will likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle is getting close.

Expected Ranges

  • GBP/USD: 1.2855 - 1.2935 ▲
  • GBP/EUR: 1.1675 - 1.1735 ▲
  • EUR/USD: 1.0985 - 1.1045 ▲