The dollar gives way; pound steady ahead of BoE decision

The dollar gives way; pound steady ahead of BoE decision
The dollar gives way; pound steady ahead of BoE decision

Sterling was steady on Thursday ahead of the Bank of England’s interest rate meeting, while the dollar rose slightly, although the moves were muted as traders awaited fresh catalysts in the market.

Currencies were trading in tight ranges after the holiday in the United States and while investors were not only awaiting the BdE, but also the decisions of the central banks of Switzerland and Norway.

The pound was last trading at $1.2718 after edging up slightly in the previous session, while the euro was flat at $1.0743.

The dollar gained 0.04% against the yen to 158.14, as the Japanese currency did not move too far from the more than one-month low of 158.255 per dollar reached last week.

Against a basket of currencies, the greenback rose 0.05% to 105.26, approaching last week’s one-month high of 105.80.

The Bank of England is expected to keep rates unchanged on Thursday, and attention will focus on any guidance on how soon an easing cycle could begin.

Although data on Wednesday showed British inflation returned to its 2% target for the first time in almost three years in May, details of the report pointed to the persistence of underlying price pressures, ruling out chances of a early rate cut.

“There’s no doubt they’ll hold rates,” said Tony Sycamore, market analyst at IG. “The headline inflation numbers were probably a welcome relief, but again there were upside surprises in the services components.

“They could potentially open the door at the next meeting, but it still looks to me like we’re two meetings away from a possible rate cut.”

However, the Swiss National Bank (SNB) is expected to cut its policy rate by 25 basis points for the second consecutive meeting on Thursday, with the recent strength of the Swiss franc and benign domestic inflation adding to the case for higher rates. looser monetary conditions.

The Swiss franc was last at 0.8838 per dollar, hovering around a three-month high.

Likewise, it held close to a four-month high of 0.94785 per euro hit in the previous session, as the common currency remains pressured by political turmoil in France and the broader bloc.

“The Swiss has performed quite well against the euro, and inflation has been coming down in Switzerland, so again, the strength of the Swiss doesn’t play well into this idea that you want to get a little bit higher inflation,” he said. Rodrigo Catril, senior currency strategist at National Australia Bank.

Elsewhere, the Australian dollar rose 0.03% to $0.66745, while the New Zealand dollar rose 0.06% to $0.61345.

Data on Thursday showed the New Zealand economy grew more than expected in the first quarter but remained weak. That did little to alter market views on the outlook for the country’s monetary policy, as a Reuters poll last month expected the rate-hiking cycle to begin by the end of the year.

 
For Latest Updates Follow us on Google News
 

-

PREV New season of ‘Betty, la Fea’ will have 33% more viewers than the original soap opera, producers say: what is the reason
NEXT Mexico on alert for Category 4 Hurricane Beryl. Heading to the Yucatan Peninsula