empty
29.10.2021 12:05 PM
Investors are weighing the situation regarding the Bank of England's rate increase

This image is no longer relevant

The pound sterling recovered some of its losses against the euro during the previous session, but it remained virtually unchanged against the US dollar.

This image is no longer relevant

On Thursday, the British currency fell against the European currency after the European Central Bank's meeting forced investors to expect a rate increase in 2022. It also did not calm their concerns about rising inflation, which led to a growth in the EU's bond yields and a strengthening of the euro.

However, the pound slightly changed its movement in early trading on Friday, when the euro plunged below the previous session's high of 84.750.

But in pair with the US dollar, it stayed the same.

This image is no longer relevant

This week's movement of the pound was caused by speculation about whether the Bank of England will raise rates at its meeting on November 4, or concerns about a possible long-term blow to economic growth as a result of supply chain disruptions due to the UK's exit from the EU.

On Friday, Deutsche Bank strategists said they had changed their minds and assumed that the Bank of England will raise interest rates at a meeting to be held next week for the first time after the pandemic.

The CME data also coincided with statements by Deutsche Bank strategists.

According to Citi's monthly survey conducted with the help of sociological agencies YouGov, the British public's fears regarding an increase in inflation next year climbed to the highest level since 2008 this month.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Today, gold is rising, trading near the all-time high reached the previous day, amid growing uncertainty surrounding the US-China trade wars. Gold is gaining ground today, remaining close

Irina Yanina 12:18 2025-04-15 UTC+2

USD/JPY. Analysis and Forecast

Today, the Japanese yen is struggling to extend its gains due to optimistic developments regarding trade negotiations and the postponement of tariffs. President Trump's statement about possible exemptions

Irina Yanina 12:08 2025-04-15 UTC+2

Trump Will Either Win or Lose. Is There No Middle Ground? (Potential Renewed Decline in #SPX and Bitcoin)

On Monday, markets calmed slightly amid Donald Trump's apparent backpedaling on the trade barriers he had imposed on America's trading partners. It gives the impression that the U.S. president

Pati Gani 09:46 2025-04-15 UTC+2

The Market Celebrates a Ceasefire

While there is still no peace in the trade conflict, a semblance of a ceasefire has appeared. The White House is beginning to frantically realize it has gone

Marek Petkovich 09:08 2025-04-15 UTC+2

What to Pay Attention to on April 15? A Breakdown of Fundamental Events for Beginners

Quite a few macroeconomic events are scheduled for Tuesday, but under the current circumstances, macroeconomic data mean little to the market. They might have a short-term local impact

Paolo Greco 06:29 2025-04-15 UTC+2

GBP/USD Overview. April 15: Trump Giveth, Trump Taketh Away

The GBP/USD currency pair continued its upward movement on Monday. As with the euro, there was no specific reason for the pair to decline. Of course, the current rally looks

Paolo Greco 03:57 2025-04-15 UTC+2

EUR/USD Overview. April 15: Who Found a Reason for Optimism?

The EUR/USD currency pair continued its upward movement on Monday. Despite the slower growth this time, the pair continues to rise. Yesterday saw a 50-pip increase; today, it's 250. What

Paolo Greco 03:57 2025-04-15 UTC+2

ECB Meeting: What to Expect?

This week, the ECB's meeting in April is happening, and the euro is in high spirits. The euro has been doing exceptionally well for at least two months—seemingly without much

Chin Zhao 00:35 2025-04-15 UTC+2

The Pound Forms a Top

The British economy grew by 0.5% in February, rebounding from no growth in January and significantly exceeding the forecast of +0.1%. This was the strongest growth in the last

Kuvat Raharjo 00:35 2025-04-15 UTC+2

EUR/USD: Northern Trend, Southern Pullbacks

The upward trend in the EUR/USD pair remains intact amid the overall weakness of the U.S. dollar. Significant downward pullbacks allow buyers to open long positions at more favorable prices

Irina Manzenko 00:35 2025-04-15 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.