In exchanged letters between the BoE governor and the UK finance minister regarding asset purchase programme, there was a mention of the official intention to looming cutting of the maximum size of the Asset Purchasing Facility, APF.The maximum size of the APF authorized has been cut to GBP871 bln, of …
Read More »BoE’s Dhingra: Additional rate hikes could deepen UK recession
BoE’s Swati Dhingra said on Wednesday that the British central bank could deepen an expected recession if its pushes up borrowing costs beyong the present level.“You could think of getting into a much deeper, much longer recession if rates continue to rise because there is already about a fairly sizeable …
Read More »GBP/USD rallies to multi-month highs
The sterling extended its gains towards 1.1790s after a soft US inflation report. The US Dollar sharplyfalls during the US session, as the US Dollar Index edged down 1.20%, below the 107.000 mark.The Consumer sentiment reading in the United States worsened as inflation expectations rose. The Pound Sterling keeps rising …
Read More »BoE’s Haskel: policy should stand firm against inflation
Bank of England policymaker Jonathan Haskel said on Friday that it is important for the monetary policy to stand firm against the risk of persistent inflationary pressure, as reported by Reuters.GBPUSD showed no immediate reaction to these comments and was last seen rising 0.6% on the day at 1.1780.Key Quotes“Concern …
Read More »BoE’s Pill Signals Further Rate Hikes
The Bank of England is pondering further raise interest rates due to concerns that inflation could become woven into the British economic activities, despite the growing risks of a prolonged recession according to BoE’s chief economist Huw Pill.Pill noted that there was “still more to do” to tackle soaring inflation …
Read More »Market Drivers – US Session 03/11/2022
The markets focused on the Bank of England on Thursday. BoE hiked its benchmark rate by 75 bps as expected. However, policymakers downwardly revised the growth forecast, anticipating the recession will continue into the future. The EURUSD pair hovers around 0.9750 after falling to 0.9729. Commodity-linked currencies extended their slides …
Read More »Sterling sinks on firmer US dollar post BoE’s hike
The US dollar is firmer and was able to record gains against major currencies on Thursday after Fed Chair Jerome Powell signaled US interest rates will likely peak at a higher level than markets expected, while sterling fell after the Bank of England raised rates but warned of a “very …
Read More »GBPUSD expected to trade at 1.06 by the end of 2023 Q1
Economists at Wells Fargo now forecast slightly less tightening from the Bank of England than previously. Subsequently, the GBPUSD pair is set to plunge toward 1.06 by the end of the first quarter of 2023. They also expect Policy rate to peak at 3.75%“We expect a 50 bps rate increase …
Read More »BOE hikes policy rate by 75 bps to 3% as expected
Following its November policy meeting, the Bank of England (BoE) announced that it raised the policy rate by 75 basis points (bps) to 3%. Policymakers voted 7-2 in favour of this decision. One policymaker voted for a 25 bps hike and one voted for a 50 bps. Bank of England (BoE) …
Read More »Market Drivers – US Session 02/11/2022
The US central bank decided a jumbo 75-basis points rate hike, and the accompanying statement suggested policymakers would soon slow the pace of quantitative tightening. US Dollar Biggest Winner From Fed’s DecisionThe US dollar finished Wednesday higher across the board following a volatile American session. The US Federal Reserve was …
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