Currency Note Sterling

Positive rhetoric from BoE buoys sterling

By Smart Currency November 21st, 2013

Sterling enjoyed a positive day for most of yesterday following the release of the minutes from the Bank of England’s (BoE) latest rate setting meeting. The BoE minutes reconfirmed the central banks belief that the unemployment rate will reach their 7% target earlier than first thought, spurring on speculation that we could see an interest rates hike ahead of schedule. This caused sterling to climb to the highest point against the US dollar in three weeks, whilst rumours surrounding the ECB’s future monetary policy aided sterling’s advances against the euro – breaking the psychological 1.20 level at one point– hitting the highest levels in almost two weeks. The US dollar high however proved to be short lived as the release of the minutes of the last Federal Reserve meeting boosted the US dollar. Today, eyes will fall on the mildly influential public sector net borrowing and some industrial orders data, with positive results likely to help reinforce sterling’s strong position. This will inevitably come alongside any further reaction to the yesterday’s BoE meeting minutes. Get in touch with your trader for the latest on sterling, as the long term outlook continues to please investors.