The Pound (GBP) is trending higher against the majority of its peers this morning as investors hope a couple of speeches by Bank of England (BoE) policymakers will shed more light on the bank’s future plans for monetary policy.
All eyes will be on Ben Broadbent today as the only member of the MPC yet to clarify his position on a possible rate hike his comments could either strengthen Sterling or cause it to tumble, depending on whether he sides with the hawks or the doves.
The BoE’s Andy Haldane will also speak today, but with him having already indicated that he is in support of tightening monetary policy it is unlikely to have a major impact.
The Pound Euro (GBP EUR) exchange rate managed to push slightly higher this morning in anticipation of the speech by the BoE’s Broadbent.
However the single currency did find some strength this morning following the release of Italy’s latest industrial production data as the reports showed that output leapt from -0.5% to 0.7% in May.
Meanwhile, European Central Bank (ECB) member Benoît Cœuré will also speak later today, although analysts do not expect him to make any major revelations towards the bank’s future monetary policy, so its impact on the Euro will likely be muted.
Hopes of a hawkish speech by Broadbent have also caused Sterling to rally against the US Dollar (USD) this morning.
Meanwhile, the ‘Greenback’ remained subdued at the start of today’s session following reports that USD investors are increasingly looking to pull their long term bets in the US currency as they fear that the Federal Reserve will not follow through with a third rate hike this year.
The US Dollar may weaken even further this afternoon as analysts predict that the latest jobs data will show than US job openings fell during the month of May.
The Pound Canadian Dollar (GBP CAD) exchange rate strengthened this morning on hopes that BoE policy makers will indicate that they support a rate hike in the near future.
However with oil prices beginning to creep up again the ‘Loonie’ will be in place to quickly exploit Sterling’s weakness should the BoE members strike a more dovish tone.
Sterling has struggled to gain against the Australian Dollar (AUD) this morning following a jump in Australia’s latest Business Confidence survey, with the upbeat outlook from firms reflecting well on Australia’s economy as a whole.
New Zealand Dollar
The Pound New Zealand Dollar (NZD) exchange rate surged this morning, climbing close to the monthly high the pairing struck last week as New Zealand’s retail card spending plummeted last month.
You can get in touch with TorFx via email here or via the contact page.