empty
 
 
02.02.2023 03:41 PM
What will be the reaction of the pound to the Bank of England and the ECB rate hikes?

This image is no longer relevant

Today, the GBPUSD pair fell to its lowest level since September as investors await policy decisions from the Bank of England and the European Central Bank.

The Bank of England is expected to raise its key interest rate by 50 basis points, marking the 10th consecutive rate hike as it continues to fight soaring inflation. But there is a possibility that the bank will raise rates a little less: by a quarter of a point.

The 50 basis point change, largely driven by the money markets, will raise the bank rate to 4%, the highest level since 2008.

The focus will be on the division of votes among politicians after the three-way split in December, when two rate-setters chose to keep the bank rate at its level, then one member favored a larger increase of 75 basis points, and six voted for 50 basis points.

If the rate is raised to 25 bps, this will put pressure on the pound.

And if the Bank of England raises by 50 basis points, it is unlikely to be such a hawkish signal as the ECB.

The ECB is likely to raise its interest rates by 50 basis points when it announces its policy decision at 13:15 UTC, and most likely, the members of the bank will announce further rate hikes at future meetings.

The euro rose 0.4% against the pound to 89.18 pence, the strongest level against the pound since September last year.

This image is no longer relevant

The pound fell 0.3% against the dollar to $1.23314.

This image is no longer relevant

On Wednesday, the Federal Reserve raised its key interest rate by 25 basis points, down from the 50 basis point increase at the last meeting. Fed Chairman Jerome Powell said more rate hikes are likely to come.

The Bank of England will also update its growth and inflation forecasts, with most economists now expecting a smaller decline than previous estimates.

GBPUSD
Great Britain Pound vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    เข้าร่วมการแข่งขัน
  • Chancy Deposit
    ฝากเงินในบัญชีของคุณใน $3,000 และรับ $8000 ไปเพิ่ม!
    ใน มีนาคม ทางเราได้ออก$8000 ภายในแคมเปญ Chancy Deposit !
    คว้าโอกาสที่จะชนะด้วยการฝากเงิน $3,000 ไปในบัญชีเทรด เมื่อทำตามเงื่อนไขนี้แล้ว คุณก็จะกลายเป็นผู้เข้าร่วมแคมเปญ
    เข้าร่วมการแข่งขัน
  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
    เข้าร่วมการแข่งขัน
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
    รับโบนัส
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
    รับโบนัส
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ
    รับโบนัส

Recommended Stories

The ECB is ready to raise the rate, but at a slower pace

European and British currencies have been in great demand in recent weeks. Although there was a lot of news during this period, I am not completely certain that this context

Chin Zhao 18:13 2023-03-29 UTC+2

EUR/USD to shoot up, but not too far

While ECB officials are talking, EURUSD continues to rise. No matter what, about the stability of the eurozone banking system, rate hikes, or even a slowdown in the monetary tightening

Marek Petkovich 17:30 2023-03-29 UTC+2

AUD/USD: Australia's inflation, risk appetite and southern prospects

The release of Australia's February inflation data put pressure on the Australian dollar today. Sellers attempted to pull the price to the bottom of the 66th figure, but they once

Irina Manzenko 17:13 2023-03-29 UTC+2

BlackRock expects Fed to keep rising rates despite banking turmoil

Black Rock Inc. is an international investment company headquartered in New York. It is one of the largest investment firms in the world and the largest in the world

Andrey Shevchenko 15:07 2023-03-29 UTC+2

What will happen to the dollar?

Despite some easing of the banking crisis, the potential for negative economic consequences remains. And it is not yet clear whether bank failures are limited only to SVB and Signature

Irina Yanina 14:03 2023-03-29 UTC+2

GBP/JPY: Sterling finds buyers

On March 28, the pound sterling periodically rolled back against the Japanese yen. But in the end, buyers took over the market. Note that the pair is very sensitive

Irina Yanina 13:30 2023-03-29 UTC+2

Gold's strength will be tested

The lack of news is already good news for the stock market. Shocks from the bankruptcy of three U.S. banks, the Credit Suisse takeover, and the problems of First Republic

Marek Petkovich 13:14 2023-03-29 UTC+2

EUR/USD creeping higher amid growing risk appetite. Game-changer could happen on Friday

EUR/USD has been creeping higher amid growing risk appetite, hawkish remarks from ECB policymakers, and dovish expectations of the Fed's further policy moves. This fundamental background enables the euro bulls

Irina Manzenko 12:02 2023-03-29 UTC+2

GBP/USD. Overview for March 29. Rumors around the Fed rate have a negative impact on the dollar

The GBP/USD currency pair continued its slight upward movement on Tuesday, having earlier bounced off the moving average line. Therefore, from a technical standpoint, we have every justification for continuing

Paolo Greco 11:33 2023-03-29 UTC+2

EUR/USD. Overview for March 29, 2023

On Tuesday, the EUR/USD currency pair maintained its upward trend. It's time to take a new look at both of these events after talking about the "swing" and the irrationality

Paolo Greco 11:19 2023-03-29 UTC+2
หากไม่สะดวกคุยในตอนนี้
ระบุคำถามไว้ได้ใน แชท.