Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

Sterling rises above 2021 lows as central bank eyed

Forex Dec 01, 2021 16:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017. REUTERS/Leonhard Foeger

LONDON (Reuters) -The British pound rose on Wednesday but held near a 2021 low versus the U.S. dollar as doubts grew on whether the Bank of England will raise interest rates at a policy meeting this month.

In broadly quiet London trading, sterling edged 0.2% higher to $1.3320 after falling briefly below $1.32 to a fresh 2021 low in volatile trading on Tuesday.

Against the euro, the pound rebounded from a two-week low to stand at 85.05 pence.

The BoE said in November it would probably have to raise rates from an all-time low of 0.1% "over the coming months", but policymakers have sounded increasingly divided on this prospect after a new coronavirus variant was detected.

Money markets were pricing in only 9 bps of rate hikes by the next meeting on Dec. 16 compared to 8 bps on Tuesday.

The dollar failed to capitalise on hawkish comments from the U.S. Federal Reserve Chair Jerome Powell on Tuesday with the greenback slipping 0.2% versus its rivals

Powell said asset purchases may need to be tapered faster to fight rising inflation, prompting traders to increase bets of a U.S. rate hike by next June. [US/]

Two-year British bond yields held within striking distance of one-month lows, weighing on the pound.

Yet, the pound was supported by improving risk appetite as global stock markets bounced back after falling on Tuesday on concerns over the new coronavirus variant Omicron. Expected gauges of currency volatility in the pound stepped back from recent highs.

Sterling rises above 2021 lows as central bank eyed
 

Related Articles

EU crypto rules set to cap dollar-pegged stablecoins
EU crypto rules set to cap dollar-pegged stablecoins By Reuters - Oct 07, 2022

By Huw Jones and Elizabeth Howcroft LONDON (Reuters) - European Union rules to regulate crypto assets will curb the market share of non-euro denominated stablecoins from 2024,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email