British Pound - A day after rates were hiked by 25 basis points, the markets continue to see no further upside in the target benchmark interest rate for next year. The notion is likely to keep downward pressure on the pound sterling, countering the strong appreciation that has taken place in the past couple of weeks. Now with the major currently hovering above the 1.9100 figure, traders and investors alike are focusing in on next weeks consumer price index report. Although this weeks BRC retail sales report sparked massive bidding on increases in consumer spending, the market is looking for indications that will effectively counter statements that were released following the decision in the United Kingdom. With the central bank stating that inflation is likely to abate in the near term, the report is expected to stay well above the previous 2.4 percent release, lending to further bias that policy makers will consider another course of action. Futures traders, however, are on the defensive as players pared back implied positions, taking the probability of more than one rate hike down a notch.
Al Bawaba
British Pound - A day after rates were hiked by 25 basis points, the markets continue to see no further upside in the target benchmark interest rate for next year. The notion is likely to keep downward pressure on the pound sterling, countering the strong appreciation that has taken place in the past couple of weeks. Now with the major currently hovering above the 1.9100 figure, traders and investors alike are focusing in on next weeks consumer price index report. Although this weeks BRC retail sales report sparked massive bidding on increases in consumer spending, the market is looking for indications that will effectively counter statements that were released following the decision in the United Kingdom. With the central bank stating that inflation is likely to abate in the near term, the report is expected to stay well above the previous 2.4 percent release, lending to further bias that policy makers will consider another course of action. Futures traders, however, are on the defensive as players pared back implied positions, taking the probability of more than one rate hike down a notch.
