GBPUSD

27 авг. 2023 г.

The British pound’s resilience this year (+5.4%) against the US dollar remains fervent as sticky inflationary pressures within the UK persist. The euro has followed a similar trend as the Bank of England’s (BoE) interest rate cycle continues in an aggressive manner. Money markets (refer to table below) favor a 25bps rate hike in September but the probability has shifted from almost 92% to just 80% with a greater chance of a larger half basis point increment gaining traction. This will theoretically give GBP additional support as the Fed is expected to keep rates on hold.

BANK OF ENGLAND INTEREST RATE PROBABILITIES