Sterling Holds at 1-1/2-Month High
Sterling was little changed, trading just above the $1.34 mark and hovering near its strongest level since September 15, as investors positioned for the Bank of England’s expected return to monetary tightening later this week, while uncertainty ahead of Tuesday’s US midterm elections weighed on the US dollar. The Bank of England is widely expected to deliver its first interest rate hike since 2023 on Thursday, amid mounting inflationary pressures stemming from the Iran war and signs of resilience in the UK economy. However, policymakers are also anticipated to push back against market expectations of several further rate increases next year. Across the Atlantic, US voters head to the polls to deliver their verdict on the first two years of President Donald Trump’s second term. Polls and nonpartisan analysts suggest Democrats are favored to regain control of the House of Representatives, while the outcome of the Senate race remains uncertain.
Sterling was little changed, trading just above the $1.34 mark and hovering near its strongest level since September 15, as investors positioned for the Bank of England’s expected return to monetary tightening later this week, while uncertainty ahead of Tuesday’s US midterm elections weighed on the US dollar. The Bank of England is widely expected to deliver its first interest rate hike since 2023 on Thursday, amid mounting inflationary pressures stemming from the Iran war and signs of resilience in the UK economy. However, policymakers are also anticipated to push back against market expectations of several further rate increases next year.
Across the Atlantic, US voters head to the polls to deliver their verdict on the first two years of President Donald Trump’s second term. Polls and nonpartisan analysts suggest Democrats are favored to regain control of the House of Representatives, while the outcome of the Senate race remains uncertain.