Top Currency Pairs Monday 8th November 9:00 UTC GBP/USD: 1.34865 (Last week: 1.36631) EUR/USD: 1.15718 (Last week: 1.15724) GBP/EUR: 1.16548 (Last week: 1.18066)
Market News
Pound Sterling The Bank of England put a halt to the Pound Sterling's gains over recent weeks as they left interest rates unchanged at the record low level of 0.1%. This came as a surprise to traders after Andrew Bailey allowed speculation to build in the weeks prior for an imminent move. Moreover, the BoE raised their inflation expectations to 5% by next April, triggering the UK currency's worst week since June. Looking ahead, investors will monitor the prospect of a trade war between the UK and EU as Brexit-related developments begin to unfold.
Euro The Euro could come under pressure in the coming weeks after Germany posted 33,949 Covid-19 cases, prompting health minister Jens Spahn to meet with state ministers to discuss slowing the spread this winter. German inflation will drive the Euro's price action this week. The European Central Bank have kept it in their best interests to remain dovish, and are now hoping that inflation issues will soon subside. German newspapers are now pressuring Christine Lagarde for punishing savers whilst she lives the 'high life'.
U.S. Dollar The Dollar held strong last week, with economic indicators and commentary from the Fed set to dictate market sentiment over the coming days. Investors will certainly keep a close eye for signals about the direction for US interest rates. As mentioned in previous weeks, investors are predicting at least two rate hikes in 2022 after the Fed announced it would taper bond purchases last week. Moreover, CPI will be released on Wednesday and will provide an update on the recent surging US inflation.
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