Sterling Could Edge Higher if BOE Signals November Rate Rise
Dow Jones09-17 16:35
0835 GMT - Sterling could appreciate modestly if the Bank of England keeps interest rates unchanged as expected but indicates a rate rise at the following meeting in November, MUFG Bank's Derek Halpenny says in a note. In this case, short-dated yields could rise slightly as back-to-back rate increases get better priced in by markets, he says. "That will help support the pound although we remain skeptical of upside scope of any notable magnitude ahead of the U.K. budget on October 28." Moreover, the Federal Reserve and European Central Bank have raised rates this month. The BOE announces its decision at 1100 GMT. Sterling trades flat at $1.3387. The euro rises 0.1% to 0.8568 pounds.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments