Economy

Sterling touches 14-month high

Sterling touches 14-month high”

Britain's pound hit a 14-month high against the dollar on Friday and was heading for its best week in more than eight years on a trade-weighted basis, as traders stacked up bets on a near-term interest rate rise from the Bank of England.

Last week's big hint from the bank's rate-setting panel that it could raise its main interest rate from the current record low of 0.25 percent as soon as November gave the pound a big lift.

However the Australian Dollar did briefly manage to register some gains overnight on Wednesday as the Australian Bureau of Statistics (ABS) reported a sharp rise in the number of Australian's entering work last month.

In a speech on Friday, Mr Vlieghe said: "Until recently, I thought the appropriate response of monetary policy was to be patient, given modest growth and subdued underlying inflationary pressure".

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.

Mr Vlieghe, who was the first Bank member to vote for a rate cut after the Brexit vote, said there was now growing evidence the United Kingdom economy was picking up.

While the ONS revealed that unemployment fell from 4.4% to 4.3% in July, the accompanying average earnings reported showed that wage growth remained flat at 2.1%, disappointing traders who had expected it to rise to 2.3% and prompting concerns about the growing gap between wages and inflation.

In the European trading, the pound rose to a 1-year high of 1.3077 against the Swiss franc and almost a 1-month high of 0.8774, from early lows of 1.2869 and 0.8907, respectively. U.K stocks, however, will once again be blunted by the strength of the pound, which has risen around 3% against the greenback amid increasing signals of an imminent rate hike from the Bank of England.

"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".



Like this

loading...
loading...

Latest


20 September 2017
Brexit could cost United Kingdom 10000 finance jobs
The United Kingdom formally triggered the Brexit process on March 29 and divorce negotiations officially began on June 19. Bank of America said it would pick Dublin, the capital of Ireland, as its European Union hub if there was a hard Brexit.

20 September 2017
Nemane starts among four changes: This Rangers XI would demolish Partick Thistle
On that, he said: "It was one of the points we discussed with the boys in the match meeting". 'The main concern is to recover. The two goals difference makes that.

20 September 2017
'He Was Murdered,' Alleges Pianist Karan Joseph's Father, Demands Inquiry
This is why my wife and I went to Mumbai. "Karan not signing the contract would mean a great loss for Rave". He contradicted the police probe by saying no one saw Karan jump off from the 12th floor.

20 September 2017
GAM Holding AG Has $13.31 Million Stake in Stryker Corporation (SYK)
BidaskClub lowered shares of Stryker Corporation from a "buy" rating to a "hold" rating in a research note on Monday, July 31st. Stryker Corporation (NYSE:SYK) slipped over -0.42% at $143.88, after hitting low of $143.31 in an intra-day trade.

20 September 2017
Rite Aid Corporation (NYSE:RAD) Slips -7.33% in Pre-market
On average, equities analysts predict that Rite Aid Corporation will post ($0.10) earnings per share for the current fiscal year. Geode Cap Management Limited Liability Corporation reported 0.03% of its portfolio in Rite Aid Corporation (NYSE: RAD ).

20 September 2017
100 dead as powerful quake hits Mexico
People frantically try to help those trapped beneath the buildings. "Thank you, God, for keeping us safe once again". According to the Associated Press, at least 44 buildings were destroyed in the Mexican capital.

20 September 2017
Livonia modeling agency owner charged with luring young girls for child porn
Ulman appeared before a federal judge Tuesday and was detained until a detention hearing, which is scheduled for Friday. Court documents show Ulman lived in the home and ran a a modeling agency called Instinct Entertainment.

20 September 2017
Vehicle seat checks set for child passenger safety week
The HCSO Safe Journey Program is funded by a grant from the Tennessee Highway Safety Office. "Many parents and caregivers don't use booster seats long enough and risk injury to the child", said White.

20 September 2017
Sealed Air Corporation (NYSE:SEE) Shares Sold by Artemis Investment Management LLP
The share price of Sealed Air Corporation (NYSE:SEE) was down -1.29% during the last trading session, with a day high of 43.72. The firm had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.06 billion.

20 September 2017
Taika Waititi in talks for Akira remake
The intention is to create and release two live-action Akira films in total, each covering three volumes in Otomo's overall work. Deadline has the news about Waititi's involvement, which is now only at the "he's in talks" stage.