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Traders cut bets for ongoing Pound rally ahead of BoE meeting

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Traders have lowered their bets on an ongoing Sterling rally ahead of Thursday’s Bank of England (BoE) meeting, as inflation slowed more than forecast in June.


The Pound has soared 24% from an all-time low of $1.033 against the Dollar in September, reaching a 15-month high of $1.314 in the middle of July.


In addition, the Sterling is the best-performing G10 currency against the greenback so far in 2023, gaining 6.2%, whilst the Swiss Franc is in second with a 5.8% gain.


That said, this is down from the 8.6% year-to-date gain for the Pound just a fortnight ago.


The Bank of England has continued to hike rates due to stubborn inflation, which has boosted Sterling, Reuters reports.


At the time of writing, the Pound was up 0.13% at $1.2850 ahead of the central bank’s policy meeting.


Elsewhere, in Japan, the Yen was weaker on Monday, extending last week’s losses following the Bank of Japan’s meeting. However, it was still on course for its first monthly gain against the Dollar since March.


The Dollar hit 142.22 Yen early on Monday, a three-week high, and at the time of writing was up 0.7% at 142.1.


In addition, China’s manufacturing activity declined for the fourth consecutive month in July, yet this led to a rally for the China-exposed Australian Dollar, bolstered by news of additional measures to boost the country’s economic recovery.


At the time of writing, the Aussie rose 0.7% at $0.6694, whilst the offshore Yuan was slightly higher at 7.1467 per Dollar.


The greenback was on course for a monthly loss on the likelihood of the Federal Reserve having ended its rate hike cycle with the 25-basis point rise last week. The Dollar index stood flat at 101.69 at the time of writing. 


Whereas the Euro rose 0.1% to $1.1029 on Monday before eurozone flash CPI and GDP data. The single currency is on track for a monthly gain of around 1%. 

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Ebene Cybercity,
Mauritius,
J. Balcikonio str. 9,
LT- 08314, Vilnius,
Lithuania,

media contact

About

deVere Group – Foreign Exchange’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines.

Contact

Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Group – Foreign Exchange’s Head of Public Relations on [email protected] or call +44 2071220925.