The pound sterling reached its highest values in more than a year against the dollar and the euro, in the context of expectations for the Bank of England rate hike.
He dollar The week begins this Monday under pressure and with a downward trend, with a pound sterling that reached its maximum values than a year and operators are betting that the greenback could have peaked along with interest rates in the United States, after the last rise that the Federal Reserve (Fed) made a few days ago and that led them to their maximum level in 16 years.
And it is that, last week, the US monetary regulator raised rates 25 basis pointsbut was somewhat more cautious than its counterparts in terms of the outlook, leaving aside guidance on the need for future increases.
Thus, the dollar index, which measures the performance of the greenback against a basket of six currencies, down 0.25%, to 101.06 points, above the 100.78 it reached last month, its lowest level in a year.
This is how the pound is strengthened
The currency of England the pound, reached 1.2668 dollars, its highest level since April 2022, although it later fell and is trading slightly below that level, with a rise of 0.26%. This occurs in a context of expectation for the possibility of a new rate hike by the Bank of England, which would take place this Thursday. Thus, it has strengthened against the euro and other world currencies.
While, the euro, the common European currency rallied nearly 16% against the dollar from September lows and is up 0.29% at $1.10505, supported by expectations that the European Central Bank will keep interest rates high for more longer than the US Federal Reserve. It is also trading at 87.23 pence, after falling to 87.11 pence on Friday, its lowest level against the British currency so far this year.
And on the other hand, the dollar appreciates 0.1% against the yen to 135.02 yenalthough it lost 0.24% against the Swiss franc, the other traditional safe haven value.
US interest rate futures price the possibility of a rate cut in July at one-third, according to CME’s FedWatch tool, despite stronger-than-expected jobs data released on Friday.
Source: Ambito
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