Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Sterling edges up ahead of Fed, BoE rate decision looms

Sterling edges up ahead of Fed, BoE rate decision looms

By Iain Withers

LONDON (Reuters) – Sterling edged up against the dollar on Wednesday as markets braced for policy decisions from the U.S. Federal Reserve and Bank of England on benchmark interest rates aimed at curbing soaring inflation.

The Fed is set to meet later on Wednesday and the BoE follows suit on Thursday, with investors focused as much on any clues as to the path of future rate hikes as on immediate moves.

Both the Fed and the BoE are expected to hike interest rates by 75 basis points at their respective meetings.

The dollar weakened broadly in early European trading hours – supporting currencies including the pound – on market bets the Fed would signal a slower pace of tightening in future.

The central bank is due to release its policy statement at 2 p.m. EDT (1800 GMT) on Wednesday.

Sterling edged up 0.1% against the dollar to $1.14990. Against the euro, the pound was last down 0.1% at 86.08 pence.

Currency analysts said the Fed meeting would likely set the tone ahead of the BoE’s decision on Thursday.

“Investors are hoping for the Fed to temper rate hikes and that’s helping cable (the pound to dollar currency pair),” said Lee Hardman, currency analyst at MUFG.

“Our worry is the Fed could be less hawkish than priced. If there’s any disappointment that could put some downward pressure on cable tomorrow.”

Markets are also focused on whether the BoE will signal it may not need to hike rates as fast as thought, Hardman added.

The pound has rebounded since slumping to a record low of $1.03270 in late September, prompted by market fallout over the vast tax-cutting plans of Liz Truss’ short-lived government.

Sterling has broadly gained against the dollar since then, supported by investors warming to the more fiscally moderate prime minister Rishi Sunak.

(Editing by Bernadette Baum)

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking and Finance Review, Alpha House, Greater London, SE1 1LB, You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post