GBP/USD Rallies to 1.6350 on Improving Economy

The pound strengthened before Bank of England Governor Mark Carney speaks this week as attention returns to the economic outlook after Scotland voted last week to stay in the United Kingdom.

The U.K. currency appreciated versus all of its 31 major counterparts as a Credit Suisse gauge of the interest-rate outlook predicts the Bank of England will boost borrowing costs by more than half a percentage point during the next year. New Zealand’s dollar strengthened against all except two of its 31 major peers after Prime Minister John Key won a record election victory on the weekend. The euro climbed from a 14-month low before European Central Bank President Mario Draghi speaks today.

“With the vote now done and dusted, it’s going to offer sterling a chance to actually trade with the fundamentals,” said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. “We are still preferring to express a constructive sterling view versus the likes of euro.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.