Best Exchange Rates

Sterling Advances Ahead of Key Inflation Figures

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD


GBP/USD 1 Week Chart

After slipping overnight due to increased Brexit uncertainty, the Pound (GBP) is rallying against the majority of its peers this morning as investors await the UK’s latest CPI data.

Economists forecast that the UK’s inflation rate will have climbed from 2.9% to a five-year high of 3% in September, something markets hope will prompt the Bank of England (BoE) to finally begin to tighten monetary policy when policymakers meet next month.

However, another jump in inflation is also likely to raise some concerns over the growing wage gap, with analysts fearing that consumer spending will come under further pressure as households are forced to cut costs.


The Pound Euro (GBP EUR) exchange rate is mounting a recovery this morning as the anticipation of an uptick in UK inflation is helping the pairing rally after dipping yesterday evening.

However the single currency may be able to stall Sterling’s advance later this morning with the release of Germany’s latest Economic Sentiment Index as analysts predict it will have jumped from 17 to 20 this month.

US Dollar

Sterling tumbled against the US Dollar (USD) yesterday afternoon as the Empire State Manufacturing Index surged in October, climbing from 24.4 to 30.2 and beating expectations it would slip to 20.7.

The ‘Greenback’ was also supported overnight by speculation that president Trump may be favouring a hawk as the new Chair of the Fed once Janet Yellen’s term comes to an end early next year.

Meanwhile, the US Dollar may find further gains later today with the release of the latest US Industrial Production figures, with economists forecasting that output will have risen by 0.3% in September, rallying from a 0.9% decline the month before.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate is pushing higher again this morning ahead of the UK’s inflation data after briefly falling last night as the ‘Loonie’ was bolstered by rising oil prices due to tensions in Iraq.

Australian Dollar

After fluctuating for much of yesterday’s session, Sterling is trending higher against the Australian Dollar (AUD) this morning as the ‘Aussie’ came under pressure from the minutes from the Reserve Bank of Australia’s latest policy meeting – which reiterated that interest rates were likely to remain on hold for the foreseeable future.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate initially fell during the Asian session last night as New Zealand’s third quarter GDP beat expectations as it jumped from 0.0% to 0.5%.

However, the ‘Kiwi’ was unable to hold on to its gains as the ongoing political uncertainty in the country continued to drag down the currency.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER Newsletter

Subscribe for the latest exchange rates, currency news and special offers directly to your inbox.

Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Wynyard Green, 4 & 5/11 York St, Sydney NSW 2000

Disclaimer | Copyright | Privacy Statement


Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.