The Pound Sterling edged higher during Tuesday trade even as markets ready themselves for the Bank of England’s anticipated interest rate increase later this week. From the BoE’s statement, market players will scrutinize the language for any clues on the possible future direction of monetary policy and interest rates. Analysts, however, believe that this nexgt rate increase is likely to be a one-shot deal, especially given the uncertainty swirling around the Brexit talks and the mixed results from data on the British economy. Some analysts are predicting that the BoE might, in fact, hold off on a hike, though the majority foresee a “dovish hike.”
As reported at 11:06 am (BST) in London, the GBP/USD was trading at $1.3208, down 0.0015%; the pair earlier hit a peak of $1.3223, while the low for the session is at $1.3190. The EUR/GBP is trading at 0.8803 Pence, down 0.18%, and off the earlier low of 0.88020 Pence while the peak is currently at 0.88237 Pence.
Sterling Outlook Remains Glum
One currency strategist says that market’s big focus is clearly on the Brexit negotiations. Market sentiment remains somewhat dubious that the politicians will be able to pull out a win for the Pound Sterling. Earlier today, a survey on consumer sentiment showed that consumers in the UK are less optimistic than they were a month earlier, and they were already statistically downbeat. The Gfk Consumer Confidence survey showed a decline to -10 from -9 for October.