{"id":1582,"date":"2023-02-16T14:29:56","date_gmt":"2023-02-16T14:29:56","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1582"},"modified":"2023-02-16T14:29:56","modified_gmt":"2023-02-16T14:29:56","slug":"sterling-gets-hammered-as-bank-of-england-might-slow-rate-hikes","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/16\/sterling-gets-hammered-as-bank-of-england-might-slow-rate-hikes\/","title":{"rendered":"Sterling Gets Hammered, as Bank of England Might Slow Rate Hikes"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1582\" class=\"elementor elementor-1582\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3acacba1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3acacba1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-76061a5a\" data-id=\"76061a5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b4fb9f9 elementor-widget elementor-widget-text-editor\" data-id=\"b4fb9f9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Pound Sterling fell sharply against the dollar on Wednesday, falling to its lowest level in six weeks, as a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-15\/uk-inflation-falls-more-than-expected-as-fuel-prices-drop\">sharper-than-expected slowdown in UK inflation<\/a> relieved pressure on the Bank of England to maintain raising interest rates.<br \/><br \/><span style=\"font-family: inherit;\">The pound fell as much as 1.5% to $1.198, a level that was last seen in early January. <br \/><br \/>The actions came after statistics showed that UK inflation fell to a five-month low of 10.1 percent in January, down from 10.5 percent the previous month. <br \/><br \/>Reuters polled economists and predicted a dip to 10.3%.<br \/><br \/><\/span><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Opposite the US<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">The currency&#8217;s slide indicates rising market certainty that the Bank of England is about to suspend its monetary tightening cycle. <br \/><br \/>It comes as strong US economic data boosts expectations that the Federal Reserve may have more work to keep inflation under control.<\/span><\/p><p>&#8220;<em>There appears to be a schism developing between what&#8217;s going on in the UK and what&#8217;s going on in the US,<\/em>&#8221; said Jordan Rochester, a Nomura foreign exchange strategist. <br \/><br \/><em>&#8220;There&#8217;s no other way to phrase it: <a href=\"https:\/\/think.ing.com\/articles\/us-inflation-remain-sticky-but-moderation-remains-likely\/\">US inflation came in high,<\/a> but the UK may be in a situation where inflation falls faster than predicted as consumers cut down on spending.<\/em>&#8221; <br \/><br \/>In contrast with the UK, US inflation was higher than predicted in January, with consumer prices growing at an annual pace of 6.4 percent against an estimate of 6.2 percent. <br \/><br \/>As a result, the currency rose, while futures markets were priced at a higher peak interest rate.<\/p><p>The world&#8217;s de facto reserve currency has fallen 8.8 percent in the last four and a half months, but has risen so far in February as a result of a recent run of solid US economic statistics.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Rate Increase This Year<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">The <\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.nytimes.com\/2023\/02\/02\/business\/bank-of-england-interest-rates.html#:~:text=The%20Bank%20of%20England%20raised,the%20highest%20level%20since%202008.\">Bank of England boosted interest rates by half a percentage point to 4%<\/a><span style=\"font-family: inherit;\"> earlier this month, but warned that it might be the last.<\/span><\/p><p>The pound has been pulled down by a &#8220;<em>dovish shift in policy advice from the BoE<\/em>&#8221; and a &#8220;<em>hawkish repricing of Fed policy,<\/em>&#8221; according to MUFG strategists.<\/p><p>The weakening of the sterling aided London&#8217;s FTSE 100 stock index, which reached an all-time high of 8,000 points for the first time on Wednesday. <br \/><br \/>The index, which is dominated by international corporations that generate the majority of their revenue outside of the United Kingdom, benefits when the sterling falls in value.<\/p><p>Sterling&#8217;s recent loss keeps it well above its all-time low of less than $1.04 set in September at the height of the gilts crisis, when former Prime Minister Liz Truss&#8217; borrowing plans and a pensions sector problem weakened investor confidence in the UK.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1676630388853000&amp;usg=AOvVaw2lFV_NQK4YmzmN8pASDEwy\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Pound Sterling fell sharply against the dollar on Wednesday, falling to its lowest level in six weeks, as a sharper-than-expected slowdown in UK inflation relieved pressure on the Bank of England to maintain raising interest rates. The pound fell as much as 1.5% to $1.198, a level that was last seen in early January. The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1583,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[57,313,467,561],"class_list":["post-1582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-bank-of-england","tag-inflation","tag-pound","tag-sterling"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1582"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1583"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}