Kenya to cut budget deficit to 4.5%    Taiwan GDP surges on tech demand    Germany among EU's priciest labour markets – official data    UNFPA Egypt, Bayer sign agreement to promote reproductive health    Egypt to boost marine protection with new tech partnership    France's harmonised inflation eases slightly in April    Egypt's El-Khatib: Govt. keen on boosting exports    Eygpt's El-Sherbiny directs new cities to brace for adverse weather    Cabinet approves establishment of national medical tourism council to boost healthcare sector    CBE governor meets Beijing delegation to discuss economic, financial cooperation    Egypt's investment authority GAFI hosts forum with China to link business, innovation leaders    Egypt's Gypto Pharma, US Dawa Pharmaceuticals sign strategic alliance    Egypt's Foreign Minister calls new Somali counterpart, reaffirms support    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Egypt's Al-Mashat urges lower borrowing costs, more debt swaps at UN forum    Egypt's Al-Sisi, Angola's Lourenço discuss ties, African security in Cairo talks    Two new recycling projects launched in Egypt with EGP 1.7bn investment    Egypt pleads before ICJ over Israel's obligations in occupied Palestine    Egypt's ambassador to Palestine congratulates Al-Sheikh on new senior state role    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Egypt's Ministry of Health launches trachoma elimination campaign in 7 governorates    EHA explores strategic partnership with Türkiye's Modest Group    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Fourth Cairo Photo Week set for May, expanding across 14 Downtown locations    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egypt hosts World Aquatics Open Water Swimming World Cup in Somabay for 3rd consecutive year    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    49th Hassan II Trophy and 28th Lalla Meryem Cup Officially Launched in Morocco    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sterling falls on rate cut hopes, Reeves' speech
Published in Amwal Al Ghad on 29 - 07 - 2024

The pound sterling dropped to its lowest level in two weeks on Monday as investors awaited the Bank of England's (BoE) interest rate decision later this week and a key speech by Finance Minister Rachel Reeves.
Sterling fell 0.25 per cent to $1.2834, touching $1.2807 earlier, its lowest since July 10, while the euro gained 0.11 per cent against the pound, reaching 84.46 pence.
Market expectations shifted, with traders now pricing in a nearly 60 per cent chance of a BoE rate cut on Thursday, up from just over 50 per cent late last week.
This adjustment in rate forecasts led to lower British bond yields, which weighed on the pound. ING's Francesco Pesole noted that the FX market might be catching up with bond market adjustments, suggesting that a rate cut could significantly impact the pound.
Investors are also anticipating Reeves' speech, where she is expected to accuse the previous Conservative government of leaving a £20 billion ($26 billion) shortfall in public finances.
Senior FX salesperson Neil Jones warned that potential tax increases could negatively affect global investor sentiment. Uncertainty surrounding the BoE's decision has been compounded by political factors, as key policymakers have remained silent ahead of the July 4 election.
Despite inflation returning to the 2 per cent target, strong growth in service prices and wages might lead some BoE officials to favour maintaining the current 5.25 per cent rate for longer.

Attribution: Reuters


Clic here to read the story from its source.