Home Daily Commentaries GBP Rebounds After Hitting Six-Month Low

GBP Rebounds After Hitting Six-Month Low

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Wednesday 20 November, 2024

Daily Currency Update

The pound has rebounded from last week’s six-month low against the US dollar, as a hotter-than-expected inflation report bolstered the Bank of England’s cautious approach toward future interest rate cuts. The UK’s annual inflation rate accelerated to 2.3% in October, the highest in six months. Up from 1.7% in September, it exceeded both market and BoE projections of 2.2%.

Bank of England Governor Andrew Bailey emphasised yesterday that the central bank is adopting a “measured approach” to lowering borrowing costs, currently at 4.75%.

Key Movers

The US dollar dipped to a one-week low against major currencies on Wednesday, extending its three-day retreat from last week’s peak. This pullback comes as markets pause to consolidate gains following the post-election surge driven by Donald Trump's victory.

Expected Ranges

  • GBP/USD: 1.2625 - 1.2695 ▼
  • GBP/EUR: 1.1975 - 1.2055 ▲
  • GBP/AUD: 1.9385 - 1.9475 ▼
  • EUR/USD: 1.0505 - 1.0595 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.