Please see today’s exchange rates at the bottom of the article.
The pound rose for the third day running against the dollar this morning for the first time since mid-January, drawing confidence from signs some at the Bank of England may be leaning toward a rise in interest rates to support the currency.
Minutes from the Bank’s latest Monetary Policy Committee meeting shocked markets on Thursday by showing one outgoing official voting for a rise in rates and others on the verge of doing so if inflation gets much higher.
Short sterling futures for next March have shifted by six basis points since the bank’s statement on Wednesday and now price in a single rise in interest rates over the next 12 months.
That should offer the pound some support as it heads into a period of renewed political pressure when Brexit talks start next month.
A number of major banks have forecast sterling will fall below $1.20 in the months ahead, but helped by the BoE, it has this week ridden out political noise around a new Scottish independence referendum and the risks of a poor Brexit deal.
We didn’t expect much in the way of movement from yesterday’s meeting but that is exactly what we got. We expect the pound to benefit further.
Rates
GBP/EUR 1.1501
GBP/USD 1.2358
GBP/AED 4.5454
GBP/AUD 1.6075
GBP/CAD 1.6482
GBP/CHF 1.2304
GBP/NZD 1.7607
EUR/USD 1.0720
GBP/ZAR 15.708
Please note: These rates are for indication purpose only – please call for a live quote on these rates or any rates not listed above.