empty
29.10.2021 12:05 PM
Investors are weighing the situation regarding the Bank of England's rate increase

This image is no longer relevant

The pound sterling recovered some of its losses against the euro during the previous session, but it remained virtually unchanged against the US dollar.

This image is no longer relevant

On Thursday, the British currency fell against the European currency after the European Central Bank's meeting forced investors to expect a rate increase in 2022. It also did not calm their concerns about rising inflation, which led to a growth in the EU's bond yields and a strengthening of the euro.

However, the pound slightly changed its movement in early trading on Friday, when the euro plunged below the previous session's high of 84.750.

But in pair with the US dollar, it stayed the same.

This image is no longer relevant

This week's movement of the pound was caused by speculation about whether the Bank of England will raise rates at its meeting on November 4, or concerns about a possible long-term blow to economic growth as a result of supply chain disruptions due to the UK's exit from the EU.

On Friday, Deutsche Bank strategists said they had changed their minds and assumed that the Bank of England will raise interest rates at a meeting to be held next week for the first time after the pandemic.

The CME data also coincided with statements by Deutsche Bank strategists.

According to Citi's monthly survey conducted with the help of sociological agencies YouGov, the British public's fears regarding an increase in inflation next year climbed to the highest level since 2008 this month.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD. UK GDP and US PPI

The pound failed to break through the 1.36 level. The pair had been actively rising for the past two and a half weeks, but the 1.3600 target proved

Irina Manzenko 00:44 2025-08-15 UTC+2

The Dollar Perks Up

The release of the U.S. Producer Price Index (PPI) for July came as a cold shower for EUR/USD bulls. The index rose by 0.9% month-on-month—the fastest pace since June 2022

Marek Petkovich 00:44 2025-08-15 UTC+2

EUR/USD. A correction, not a trend reversal

On Wednesday, the euro-dollar pair once again attempted to consolidate within the 1.17 handle, but the upward momentum faded after buyers failed to break through the 1.1750 resistance level (upper

Irina Manzenko 00:44 2025-08-15 UTC+2

NZD/USD. Analysis and Forecast

On Thursday, the NZD/USD pair faced resistance near the 50-day Simple Moving Average (SMA), retreating from the psychological 0.6000 level, above the two-week high reached the previous day. Prices broke

Irina Yanina 19:51 2025-08-14 UTC+2

DXY. Analysis and Forecast

The U.S. dollar index, which tracks the dollar's value against six major currencies, is trading just above 97.80, attempting to recover recent losses but so far with little success. Recent

Irina Yanina 12:54 2025-08-14 UTC+2

Market climbs to its peak

The market always finds a reason for optimism. At first, it was the de-escalation of trade conflicts, the so-called TACO effect, or Trump Always Chickens Out, the resilience

Marek Petkovich 10:47 2025-08-14 UTC+2

Gold Rises for the Third Consecutive Day

Gold prices rose for the third straight day as expectations for Federal Reserve interest rate cuts increased after Treasury Secretary Scott Bessent urged the U.S. central bank to lower borrowing

Jakub Novak 09:40 2025-08-14 UTC+2

The Topic of Interest Rate Cuts in the United States Remains Dominant in the Markets (there is a chance for renewed growth in #NDX and #SPX contracts)

On Wednesday, markets continued to price in expectations of a Federal Reserve interest rate cut at the September meeting, pushing the tariff theme—initiated earlier this spring by the U.S. president—slightly

Pati Gani 09:36 2025-08-14 UTC+2

Everything Will Be Decided in Real Time

Yesterday, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, said that the central bank's meetings this fall would be conducted in real time, during which

Jakub Novak 09:10 2025-08-14 UTC+2

The Dollar Regains Some Ground

Yesterday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, said he still considers one interest rate cut in 2025 appropriate, provided the labor market remains stable. "For

Jakub Novak 08:55 2025-08-14 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.