Blog


20/06/2022 – Exchange Rates

  • Posted by Shyam Gokani in Rate Alerts
  • June 20, 2022
  • No Comments

The pound edged higher this morning, breaking a three-week losing streak versus the broadly struggling U.S. dollar as hawkish comments from policymakers supported the currency.

While the Bank of England raised interest rates by just a quarter point last week – lagging more robust action from the U.S. Federal Reserve and other central banks, markets are putting a 80% chance on a half-point rise in July and expect almost 100 basis points of tightening by September.

The BoE’s new message that it may have to act “forcefully” on interest rates is not unconditional and depends on the persistence of inflation pressures.

A number of factors point to pound weakness at the moment but supported Bank of England rate expectations have provided a floor for now, and the pound is stabilising at the centre of the 1.20-1.25 area.

Against the U.S. dollar, the pound is up 0.1% at $1.2236 after three consecutive weeks of losses. It fell to a March 2020 low of $1.1934 last week.

Net short pound positions fell for a third consecutive week, according to latest positioning data as some traders have cut back on their bearish pound bets.

GBP/EUR 1.1650 GBP/USD 1.2263 GBP/AED 4.4982
GBP/AUD 1.7543 GBP/CHF 1.1821 GBP/CAD 1.5924
GBP/NZD 1.9282 EUR/USD 1.0514 GBP/ZAR 19.547

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited and Equals Connect Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). | Terms and Conditions | Privacy Statement | Careers