Sterling fell in European trade to 37-year lows against dollar, sharpening its decline for the third straight session ahead of Bank of England's monetary policy decisions. 

Dollar hit fresh 20-year highs against major rivals after the Federal Reserve hiked interest rates ti 2008 highs, while preparing for more rate hikes until March 2023. 

GBP/USD fell over 0.4% on Thursday to 1.1212, the lowest since 1985, after losing 1% yesterday due to complete dollar dominance over rivals. 

Bank of England

Bank of England is expected to increase interest rates by 50 basis points today to 2.25%, the seventh such increase in a row. 

The meeting comes amid warnings that the UK might already be in recession, with retail sales falling past estimates in August, as retail sales represent the consumer economy. 

The Dollar

The dollar index rose 0.3% on Thursday for the third straight session, hitting 20-year highs at 111.81 against a basket of major rivals. 

The gains accelerated after Russian President Vladimir Putin announced military mobilisation to support the war effort in Ukraine. 

Dollar also emerged as a favorite investment after the Federal Reserve hiked rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008. 

The world's largest central bank asserted the path of policy tightening and rate hikes until March 2023 in an effort to rein in record inflation.

Official US data by the Energy Information Administration showed crude stocks rose by 1.1 million barrels to 430.8 million barrels last week, while analysts expected a buildup of 2 million barrels. 

Gasoline stocks rose 1.6 million barrels to 214.6 million barrels, while distillate stocks rose by 1.2 million barrels to 117.3 million barrels. 

US stock indices rose on Wednesday ahead of the crucial Federal Reserve's decisions. 

The Fed will announce it rate decision later today, expected to hike rates by 75 basis points to rein in record inflation. 

Markets also await Fed Chair Jerome Powell's remarks in a press conference following the decisions. 

Otherwise, US President Joe Biden set up a $2.9 billion aid budget from the US to support global food relief efforts. 

On the other side, Russian President Vladimir Putin recently announced partial military mobilisation for Russian troops to defend the country against what he views as aggression. 

Dow Jones rose 0.6%, or 198 points to 30,901, while S&P 500 climbed 0.7% to 3,881, as NASDAQ rose 0.4% to 11,475. 

Oil prices rose 3% in European trade on Wednesday on track for the first profit in three days amid mounting concerns about oil and gas supplies from Russia, after president Vladimir Putin announced a partial military mobilisation. 

Prices were also boosted after OPEC Plus pumped amounts less than agreed upon in August, while the Iranian nuclear deal is facing difficulties. 

Global Prices

US crude rose 2.9% to $86.66 a barrel, while Brent added 3.2% to $93.46 a barrel, with a session-low at $90.20. 

US crude lost 0.9% on Tuesday, while Brent lost 0.8% as investors shun high-risk assets. 

Russian Military Mobilisation

Russian President Vladimir Putin announced a partial military mobilisation in the country , putting the economy in a constant war state amid the ongoing Ukrainian campaign.

Putin accused the west of waging war on Russia and asserted Russia will use every available tool to protest itself and its people against external threats.

The mobilisation means gathering upwards of 300 thousand reserve troops to serve in the military campaign in Ukraine.

OPEC Plus

An internal document from OPEC Plus showed the group's oil production was less than specified targets during August, by nearly 3.583 million bpd, while July production was less by 2.892 million bpd from targets. 

Nuclear Deal

In others news about the Iranian nuclear dear, Russia said negotiations remain stuck, with France asserting the ball is in Iran's court to move forward now.

Difficulties achieving the deal means US and European sanctions on the Iranian oil sector are maintained, in turn preventing their return to markets. 

US Stocks

Initial US data showed commercial crude stocks rose by 1 million barrels in the week ending September 16, the fourth such increase in a row, below estimates of a 2 million barrels build. 

According to the tentative data, total US commercial crude stocks rose to 439 million barrels last week, the highest since August 2021, in a negative sign for demand in the US. 

Now investors await official government data on crude stocks, expected to show a buildup of 2 million barrels last week.