Pound hits highest since Brexit vote on rate rise speech

Pound hits highest since Brexit vote on rate rise speech”

Its tilt towards the first interest rate hike in more than a decade, and additional comments from Governor Mark Carney, saw sterling climb over 1% to hit $1.34 for the first time in over a year.

"Admittedly, the Bank of England has previously talked up the likelihood of an interest rate hike then failed to follow through, but there does seem to be a more concerted effort this time around and more unanimity within the MPC of the case for a hike". It extended those gains to $1.3450 on Friday, up half a percent on the day.

Against the euro, it gained 0.3 percent to 88.75 pence.

The pound has continued to rise on currency markets this morning and gilt yields have surged further as further hawkish commentary from the normally dovish MPC policymaker Gertjan Vlieghe built on the unexpectedly hawkish tone yesterday from the Bank of England on the potential for a possible move in interest rates.

The Bank kept rates at 0.25% this week, but hinted at a rise in the future.

This signalling has gone a long way to help underpin the pound this week, particularly if we get further hawkish rhetoric from these other central banks that suggest they may also look to tighten policy in the coming months.

Brexit headlines were also on investors' radar ahead of a speech in Florence on Friday by British Prime Minister Theresa May.

Yields on the United Kingdom government's two-year debt climbed to levels last seen before the nation voted to leave the European Union.

Brussels has said talks on Britain's future trading relationship with the European Union can only start after the other 27 European Union governments are satisfied that "sufficient progress" has been made on the terms of the departure.

However, Mr Carney said that "any prospective increases" in the Bank's benchmark interest rate would be made at "a gradual pace and to a limited extent" and would need to continue providing "substantial support to the economy".

"We're still in the middle of Brexit negotiations, we've got the Conservative party conference coming up and we're in a time of political uncertainty".

Like this



19 September 2017
'We really have a chance,' Trump says on Israeli-Palestinian peace
At the conclusion of the exchange, Netanyahu told reporters: "What is important is the substance, not the words". Trump in his remarks - unlike Netanyahu - emphasized his hopes for a brokered Israeli-Palestinian peace.

19 September 2017
CCTV released over Tottenham-Chelsea FA Cup assault
Pochettino's honestly and ambition is laudable, and he is just articulating what many of his peers are thinking. But Tottenham must build a project with the possibility to fight for the Champions League or Premier League.

19 September 2017
Byron Cowart, former No. 1 DE, leaving Auburn program
Through 26 games at the collegiate level, the 6-foot-3, 283-pound defensive lineman has 15 tackles with 1.5 for loss. He said his mother's health was an issue and that "I already wasn't playing enough and contributing to the team".

19 September 2017
Episode Shadow Gameplay: Sonic Forces
Sonic Forces Episode Shadow will make Shadow the Hedgehog , the edgy anti-hero of the series, playable in the game. But we haven't had the chance to play as Shadow in several years - not since. geez, Sega Superstar Tennis .

19 September 2017
Kenya's judges condemn 'savage' intimidation following election ruling
The ruling marked the first time in Africa that a court has nullified the re-election of a sitting leader. Chief Justice David Maraga said the demonstrations were "clearly meant to intimidate individual judges".

19 September 2017
Netanyahu meets el-Sisi in NY for the first time
He told them that he believes the best way to advance the peace process was through a regional approach involving the Arab states. In a statement, the Prime Minister's Office said that the two met for about an hour and a half at Sisi's hotel.

19 September 2017
Global stocks, dollar rise as investors turn eyes to Fed
Benchmark 10-year Treasury notes were last down 7/32 in price to yield 2.226 percent. Gold hit a 2-1/2 week low, with spot gold down 0.6 percent at $1,311.51 an ounce.

19 September 2017
Gylfi Sigurdsson says Everton are 'good enough' to turn things around
Everton defender Michael Keane has revealed that he is remaining positive despite the Toffees hard start to the Premier League campaign.

19 September 2017
Gurmeet Singh: Haryana police files FIR against Honeypreet for inciting Panchkula violence
Sandhu on Monday said that the names in the list could increase as the investigation into the entire episode was under way. The officer also said that Ram Rahim is not allowed to have any contact with other prisoners.

19 September 2017
Marvel vs. Capcom Infinite: Full Roster List Including DLC
Initial rumors had Gill from Street Fighter III as the final DLC character to balance out the Capcom and Marvel sides. Winter Soldier, Venom and Black Widow, however, are all new characters, having not appeared in the game at all.