The British pound fell over 1% against the dollar on Friday after a stronger-than-expected U.S. nonfarm payrolls report cemented the case for another super-sized U.S. rate hike.
While the Bank of England lifted rates by 50 basis points on Thursday, raising the key rate by the most in 27 years, its rate-hiking pace has been slower than that of the U.S. Federal Reserve.
The pound was last down 1.06% at $1.20295 , having touched a 10-day low at $1.2004 just after the U.S. data. It was also set to end the week lower after two straight weeks of increases. The BoE said on Thursday the economy would slip into recession at the end of 2022 and not emerge until 2024.Analysts predict that the gloomy outlook, coupled with the BoE's resolve to fight inflation, which the bank expects to hit 13%, is likely to keep sterling under pressure.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Here’s Why More Fed Officials Are Warning That The Market Is Getting Ahead Of ItselfFed officials say the central bank is nowhere near a monetary pivot.
Les mer »
Fed rate hikes expected to become more aggressive after strong jobs reportSome economists expect the Federal Reserve could be more aggressive than the market has expected, following July's surprisingly strong jobs report.
Les mer »
Higher prices lead to higher wages, which fuel higher prices. The Fed must break this cycle with aggressive rate increases.OPINION: For now, the Federal Reserve needs to follow the same principle that made it so successful in helping to prevent economic collapse in 2020: err on the side of doing too much, not too little.
Les mer »
US Dollar Forecast: DXY Index, USD/JPY Rates Find Support – For NowThe US Dollar's (via the DXY Index) rebound in recent days has been catalyzed by familiar forces: US Treasury yields turning higher as near-term Fed rate hike odds increase.
Les mer »
Bitcoin fails to beat $23.4K sellers as US payrolls upend inflation debateThere's no fooling analysts on inflation as U.S. payroll data accompanies fresh Bitcoin price rejection.
Les mer »
Fed rate hikes expected to become more aggressive after strong jobs reportSome economists expect the Federal Reserve could be more aggressive than the market has expected, following July's surprisingly strong jobs report.
Les mer »