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The British pound rises, while Dollar in anticipation of CPI

12 Feb,2024
The British pound rises, while Dollar in anticipation of  CPI

The pound sterling rose on Monday against a basket of global currencies, extending its gains for the second day in a row against the US dollar, recording the highest level in two weeks, with the fading prospects of an early cut in interest rates in the United Kingdom. As it is in order to re-evaluate those... Possibilities Today, the markets are in a state of anticipation later today for a speech by the Governor of the Bank of England, Andor Bailey, about the development of inflation in the country and the future of monetary policy and interest rates.
 
The pound rose against the dollar by more than 0.1% to ($1.2644), the highest since February 2, as the pound had achieved a 0.1% rise on Friday against the dollar, the third gain in the last four days.
At the recent Bank of England meeting, he said that CPI inflation is expected to fall temporarily to the 2% target in the second quarter of 2024 before rising again in the third and fourth quarters. Following this meeting, the possibilities of an early reduction in British interest rates faded, which makes the pound sterling among the best performers in the G8 so far in 2024, noting that the Governor of the Bank of England, “Andor Bailey,” is scheduled to deliver a speech at the meeting. Loughborough University, is expected to address the evolving battle with entrenched inflation in the UK and the future of interest rates this year.
 
 As for the US dollar, it is heading into a busy week after a series of rises that recently stabilized at the 104 levels.
As the markets are awaiting the US inflation data, which is expected to record a level of 2.9%, and the reading is lower than the current levels of 3.7%. Therefore, there is a state of anticipation for this data due to the importance on the American economy and the future of interest rates.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.

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