The pound reached the strongest level in nine weeks against the euro before the Bank of England announces its monetary policy decision tomorrow.
The U.K. currency was about 0.2 percent from the highest since August 2009 versus the dollar amid speculation an improving economy will spur the central bank to increase interest rates sooner than it currently predicts. Bank of England governor Mark Carney said last week borrowing costs may remain low due to slack in the labor market. U.K. government bonds were little changed.
“The pound continues to trade at reasonably robust levels and should continue doing so,” said Peter Kinsella, a senior foreign-exchange strategist at Commerzbank AG in London. The gains are also “a reflection of dollar weakness more so than just sterling strength. However most of the U.K. data has been reasonably good.”
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.