The pound, which initially fell following the Bank of England’s latest interest rate decision, made significant gains yesterday, jumping by over 1% against the dollar. This morning, sterling has lost a little of this strength.
In its latest monetary policy meeting, the Bank of England decided to raise interest rates by a further 25 basis points, bringing the base interest rate to 1.25%. While this was disappointing for markets, who had hoped for a larger hike, expectations for a 50 basis point hike in August have supported sterling.
The dollar fell against several major currencies yesterday following a series of disappointing data releases.
Today, the focus will be inflation figures for the eurozone and a speech by US Federal Reserve Chair Jerome Powell.
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