Sterling spikes to 53-week peak versus dollar

Economies.com
2017-09-14 17:37PM UTC

Sterling soared against the dollar in American trade to the highest since last September, following a spate of data and developments from Britain and the US, the world's largest economy. 

 

As of 06:13 GMT, GBP/USD jumped 1.36% to 1.3391 from the opening of 1.3211, with an intraday low at 1.3155, and a one-year high at 1.3404. 

 

Earlier, Bank of England policymakers voted to keep interest rates unchanged at their record lows of 0.25%, and maintain to asset purchase program at 435 billion pound, with two members voting to increase rates out of nine, while members voted unanimously for keeping the asset purchase program. 

 

The BoE released its monetary policy report as well, with governor Mark Carney noting that the central bank needs to calibrate interest rates in the next few months, adding that he's one of the members who support a possible rate hike, while noting that inflation has accelerated in the kingdom due to the pound's decline, which calls for an urgent policy tightening to keep a check on prices.  

 

Otherwise, the British Government's spokesperson said that Prime Minister Theresa May will make an official speech on September 22 on the bilateral relations between Britain and the European Union after wrapping up the Brexit process completely by March 2019, noting that the speech will reflect the UK government's desire to maintain a special partnership with the EU. 

 

On another note, earlier US data showed consumer prices accelerated to 0.4% from 0.2% in July, besting expectations of 0.3%, while core prices also accelerated to 0.4% from 0.1%, passing forecasts of 0.3%. 

 

On a yearly basis, consumer prices rallied to 1.9% from 1.7% in July, surpassing forecasts of 1.8%, as core prices steadied at 1.7%, still above forecasts of 1.6%.

 

Unemployment claims for the week ending September 9 fell to 284 thousand from 298K in the previous reading, below expectations of 300K. 

 

Upbeat US inflation data could impact policymakers' decisions at the Federal Open Market Committee meeting on September 19-20, at which Fed policymakers are expected to unveil their three year forecasts for growth, inflation, unemployment, and interest rates. 

 

Chances of a Fed rate hike for a third time this year rose to 50.9% from 41.4%, according to latest changes in financial bet markets. 

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