London Daily

Focus on the big picture.

Pound Hits Five-Month Low as Dollar Rallies: Sterling Sinks Amid Lower Fed Easing Expectations

The British pound reached a five-month low against the dollar on Friday despite the UK economy showing signs of exiting recession.
The pound dropped to $1.249, its lowest since mid-November, due to lower expectations for Federal Reserve easing and higher U.S. bond yields.

The euro also fell against the pound, with the ECB signaling a possible summer rate cut.

The UK's economic output grew by 0.1% in February, but the pound still faced a weekly loss of 1.1%.

The Bank of England (BoE) is expected to make an interest rate cut soon, according to Rabobank senior FX strategist Jane Foley.

The inflation and labor data, which could influence the BoE's decision, will be released next week.

Money markets anticipate approximately 52 basis points of rate cuts from the BoE this year, with a 39% chance of the first cut happening in June.

The BoE is reportedly preparing for a summer move, either in June or August.

The Bank of England (BoE) inflation expectations have decreased from approximately 68 basis points (bps) predicted for 2024 at the beginning of the week.

This change was prompted by a Financial Times article written by BoE official Megan Greene, which expressed concerns about the longevity of UK inflation.

Additionally, higher-than-anticipated U.S. inflation has led markets to revise their expectations for the first Federal Reserve (Fed) interest rate cut.

The first rate cut is now projected to occur in September, as opposed to June.
Translation:
Translated by AI
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Public Uptake of AI Tools Remains Limited
New Tax Rules on Second Homes in the UK to Address Housing Crisis
Can Europe Transition to a War Economy?
France Implements Stricter Airbnb Regulations
Upcoming Pandemic Inevitable, Warns Former UK Chief Scientific Advisor
British Tourists Assaulted by Bouncers in Pattaya, Thailand
Facebook Delays Removal of Fake Account Exploiting TikTok Star
Billionaire Non-Domicile Flees UK Amid Tax Law Changes
Theresa May Admits Mistakes Over Immigration Policies
Nicki Minaj's Manchester Concert Canceled After Amsterdam Arrest
UK Conservative Party Proposes Mandatory National Service at 18
Kate Middleton's Public Absence Throughout 2024
Asylum Seekers Arriving In UK by Sea Exceed 10,000 This Year
UK Criticizes ICJ Order on Israel's Rafah Assault
Ukraine's Fight Against Corruption Gains Ground Amid War
Czech President Petr Pavel Injured in Motorcycle Accident
Record Number of Abortions in England and Wales
Paul McCartney Honours Bruce Springsteen at Ivor Novello Awards
US and UK to Reject ICJ Ruling on Israel's Rafah Offensive
World Court Orders Immediate Halt to Israeli Offensive in Gaza
Understanding FLiRT COVID Variants and Their Impact
Baltic NATO Members to Construct 'Drone Wall'
Global Life Expectancy Dropped By 2 Years Due To COVID-19
Macron Halts New Caledonia Voting Reform After Riots
Rishi Sunak Shelves Rwanda and Smoking Policies Ahead of Election
US Refuses World Court Jurisdiction
China Conducts Surprise Military Drills Around Taiwan
Grim Polls Predict Major Loss for PM Rishi Sunak
Rishi Sunak's Campaign for UK Election: Key Issues Highlighted
German Property Crisis Worsens as Foreign Investment Declines
Princess of Wales's Taskforce Calls for Business Investment in Early Childhood
Campaign Groups Condemn UK Report on Protests
Former Royal Marine Charged with Espionage Found Dead
Australian PM Calls for Julian Assange's Freedom
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Julian Assange Granted Right to Challenge US Extradition
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Ireland's Homeless Gain Voting Rights
Blinken orders crackdown on Israel-Hamas leaks
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
What Happens If an Iranian President Dies in Office?
Spain Recalls Ambassador After Argentina President's Remarks
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Rwanda Denies Entry to Human Rights Researcher
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
×