Sterling remained choppy against the euro throughout yesterday but fell dramatically against the dollar in the lead up to the Fed’s interest rate decision around 7pm UK time.
Today, all eyes will be on the BoE’s upcoming interest rate decision, as markets await what could be the UK’s highest rate hike in 33 years. The Bank of England is expected to raise the UK’s main interest rate to 2.25% in their monetary policy meeting at lunchtime. The anticipated hike follows August increase to 1.75% and is predicted to be the seventh consecutive rate hike, pushing borrowing costs to their highest level in 13 years.
Tomorrow, the UK’s Gfk consumer confidence reading will be released. The upcoming data is forecast to fall to a gentler -35 (following -44 in August) as households continue to battle the rising cost of living.
