11/05/2017 – This Morning’s Currency Rates

The exchange rates are all listed below. Please note all the rates listed below are for indication purposes only and are subject to change. Please contact us for up to date quotes.

Sterling remained below seven-month highs against the dollar this morning, as investors waited for UK economic data and a Bank of England interest rate decision and inflation report due later in the day, neither of which is expected to indicate a change in bank policy.

A quieting of global market volatility and developments on its talks on leaving the European Union have helped the pound since it gained 3 percent gain on Prime Minister Theresa May’s announcement of a June 8 parliamentary election last month.

Sterling has also struggled to climb past $1.30, and there was little confidence among dealers of a signal from the Bank of England on Thursday that would send it higher, even as inflation tops the bank’s 2 percent target.

The BoE is expected to leave record-low interest rates unchanged. Brexit, a national election and mixed economic data are likely to leave the Bank seeking more clarity before it raises rates for the first time in nearly a decade.

Despite 1Q2017 GDP growth disappointing the BoE’s forecasts, the focus today will be on whether anyone joins Kristin Forbes in voting for a hike.
After Charlotte Hogg’s resignation, there are only 8 members on the MPC (Monetary Policy Committee) now, meaning we are likely to see a 7-1 vote for unchanged policy. A 6-2 vote, with perhaps Michael Saunders voting for a hike, would be a surprise and would lift sterling.

GBP/EUR 1.1861
GBP/USD 1.2910
GBP/AED 4.7432
GBP/AUD 1.7513
GBP/CAD 1.7695
GBP/CHF 1.3012
GBP/NZD 1.8835
EUR/USD 1.0871
GBP/ZAR 17.208

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