💱UK Pound Sterling/US Dollar FX Spot Rate
GBPUSD
▲ PositiveMonetaryrelevance
Expectations of BOE rate hikes strengthen GBP, making GBP/USD pair move ambiguous due to base/quote conversion.
Expectations are growing among investors that the Bank of England will raise interest rates in the coming months, pushing UK government bond yields to their highest levels since May. On the 14th, UK interest rate futures priced in around 50 basis points of monetary tightening by December, equivalent to two quarter-point rate hikes. A September rate increase is fully priced in. The policy-sensitive two-year gilt yield rose about 8 basis points to 4.4539 percent, its highest since May 19. Yields on other maturities also reached their highest levels since May.
Expectations of BOE rate hikes strengthen GBP, making GBP/USD pair move ambiguous due to base/quote conversion.