You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: Pound rallies on BoE rate hike bets

currency-newsWeekly roundup: Pound rallies on BoE rate hike bets
The pound stormed higher through the first half of last week, with the currency being underpinned by renewed hopes that the Bank of England might still hike interest rates in 2021.

Speculation regarding a December rate hike was initially triggered by comments from BoE Governor Andrew Bailey regarding his concerns about inflation, with a stronger-than-expected jobs report further supporting rate hike bets. 

The publication of the UK’s consumer price index on Wednesday then turbocharged expectations for an imminent rate hike, after reporting UK inflation rocketed up to a decade high of 4.2% in October.

However, the pound’s rally came to an abrupt halt in the second half of the week after Sterling fell victim to some profit taking, with the BoE’s miscommunication over a November rate hike still fresh in the minds of many GBP investors.

The release of some stronger-than-expected UK PMI figures may help the pound to consolidate its recent gains in the first half of this week, as the upbeat November releases could help to bolster BoE rate hike bets.

However lingering Brexit uncertainties could still act as a headwind for Sterling and limit the currency’s upside potential.
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.