The Pound Sterling edged higher against the US Dollar with FX traders focused on the latest data which could help raise expectations of another imminent rate hike from the Bank of England. Markets are awaiting new figures on inflation, unemployment and wages, all of which are due out tomorrow and Wednesday with analysts predicting a slight fall in inflation, no change to the unemployment rate and a rise in earnings.
As reported at 10:38 am (BST) in London, the GBP/USD was trading at $1.4297, up 0.44%; the pair earlier hit a peak of $1.4304 while the low is at $1.4232 in this trading session. The EUR/GBP is trading at 0.86540 Pence, down 0.13994%; the pair has ranged from a session trough of 0.86448 Pence to a peak of 0.86700 Pence.
Markets Eye Next BoE Meeting
Markets expect a 25-basis points interest rate hike from the Bank of England when they meet next month, largely as a result of their efforts to curb inflation. FX traders have generally priced in a hike already, and this week’s results, should they meet expectations, will provide a green light for that sentiment. News that the British government had joined forces with the United States and other allies on a missile strike on chemical weapons facilities in Syria did little to dent risk appetite.