The pound this Wednesday went up to its highest level in a month because the global dollar He retreated even more after advancing two days for the threat of radical tariffs in USAwhile attention in the markets of the United Kingdom He focused on the decision on the rates of the Bank of England Thursday.
The pound sterling It rose to $ 1,2532 in morning operations in London, Its highest level from January 7, and finally rose 0.36% to $ 1,2526.
He dollar index American, who follows the evolution of the currency compared to six currencies, fell 0.5% on Wednesday. It has retreated since it reached a maximum of three weeks on Monday, when it rose to 1.3% because USA seemed willing to impose tariffs on Mexico and Canada.
Since then, the dollar has fallen around 2.1% after so much Mexico as Canada They obtained a post of a month from the tariffs, although USA and China The exports taxes of each increased, they assured from Reuters.
Many economists believe – and British officials have hopes – that Great Britain The worst of the aggressive tariff policies of US President Donald Trump will be saved due to a more balanced commercial situation between the two countries.
That has helped the pound UP FOR THREE WEEKS AGAINST THE euro, since the operators are committed to the euro zone is under a greater threat to the American taxes. The euro remained stable in front of the sterling pound on Wednesday at 83.11 pence.
Waiting for the Bank of England
Operators and investors expect the Bank of England (BOE) Cut interest rates at 25 basic points (PB) up to 4.5% on Thursday, which reflects a slowdown in British growth and a fall in inflation in the services sector, which had so far been persistent. The bank will also publish new forecasts for growth and inflation.
Libra has fallen around 0.8% and 0.6% against dollar and to the USrOr respectively so far this year, since markets have discounted more BOE cuts due to the slowdown in growth.
“We hope that the BOE cuts the rates in 25 basic points and that the flexibility guidelines are strengthened in relation to market expectations,” said Geoff Yu, a senior market strategist of BNY.
“Similar to European Central Bank (ECB), at least one 25 basic points should be applied per quarter, since growth risks remain strongly down, especially measured through household demand, “he added.
Monetary market prices showed that operators expected the Bank of England It will make its monetary policy more flexible around 84 basic points this year. The bank began to reduce its main rate from 5.25% in August.
Source: Ambito
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