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Pound Rises on ‘Higher for Longer’ Interest Rate Expectations
Sterling has been higher following a dip last week. Interest Rate expectations are setting the tone for some of the positions we are seeing so far. The Bank of England raised interest rates as expected 25 bps last week taking UK interest rates to 5.25%. We did see Sterling dropping on the news. Cable dropped to $1.2623, its weakest level against the dollar since late June. GBPEUR fell to 1.1565, both have since recovered. This does highlight once again how sterling has been once again weaker following an interest rate decision to hike. Friday saw the latest US Nonfarm Payroll data, a key factor used by the Fed in ... (full story)