Sterling hits a two week high
search

The latest Jewish News

Read this week’s digital edition

Click Here
Promoted ContentForeign Exchange (FX) update

Sterling hits a two week high

GBP

Sterling hits a two week high on Thursday against the euro, building on the previous gains throughout the week.

The market has been focusing on hopes a post-Brexit trade war with the European Union will be avoided and on expectations the Bank of England (BoE) will increase interest rates this year.

The BoE, facing a rise in inflation, looks set to be the first major central bank to raise interest rates since the beginning of the pandemic.

The pound jumped against the dollar on Monday after BoE Governor Andrew Bailey stressed the need to prevent inflation from becoming permanently embedded, and fellow policymaker Michael Saunders said households must brace for “significantly earlier” interest rate rises.

The pound was boosted across the week with the expectation that the BoE could raise interest rates as soon as December to try curbing surging prices created by the lack of supply and rising costs of energy. Yesterday however, MPC member Silvana Tenreyo tried to pour cold water on the idea of an early rate rise by stating that the BoE shouldn’t look to raise interest rates to tackle inflation if the bank considers it to be temporary.

This was shrugged off by the market with potentially positive news coming from the Brexit trade talks with the EU. The EU released its plan to reduce the amount of post-Brexit checks on goods and medicines arriving into Northern Ireland from the rest of the UK. The pound looks likely to hold onto its gains as we have no UK data of note for today.

USD

The dollar continued to retreat against other major currencies.

The FOMC minutes signalled that the Federal Reserve (Fed) expects to taper its bond purchases in November or December. The minutes noted that the Fed would reduce the USD 120 billion/ month gradually, until the programme was completely terminated by July 2022.

Calls for a rate rise is also gaining momentum in the US, as the markets have brought forward the pricing of a rate hike from December 2022 to September 2022.

Although the pound has had a good week against the dollar, it still failed to break above key resistance. In the last few weeks, the pound rose in the European session but then dropped back when the US session opened. Even with the expectation of an early rate rise from the BoE, the gains against USD appear to be limited. The fact that the UK economy still has several hurdles to get over, such as supply shortages and steep shortage of labour, GBP may struggle to gain against USD in the near term.

For more information on how RationalFX can help you, contact International Partnership Manager Freya directly at 0207 220 8181 or Freya.Robinson@rationalfx.com and quote ‘Jewish News’ for a free first transfer.

Alternatively, click here for more information.

Support your Jewish community. Support your Jewish News

Thank you for helping to make Jewish News the leading source of news and opinion for the UK Jewish community. Today we're asking for your invaluable help to continue putting our community first in everything we do.

Unlike other Jewish media, we do not charge for content. That won’t change. Because we are free, we rely on advertising to cover our costs. This vital lifeline, which has dropped in recent years, has fallen further due to coronavirus.

For as little as £5 a month you can help sustain the vital work we do in celebrating and standing up for Jewish life in Britain.

Jewish News holds our community together and keeps us connected. Like a synagogue, it’s where people turn to feel part of something bigger. It also proudly shows the rest of Britain the vibrancy and rich culture of modern Jewish life.

You can make a quick and easy one-off or monthly contribution of £5, £10, £20 or any other sum you’re comfortable with.

100% of your donation will help us continue celebrating our community, in all its dynamic diversity...

Engaging

Being a community platform means so much more than producing a newspaper and website. One of our proudest roles is media partnering with our invaluable charities to amplify the outstanding work they do to help us all.

Celebrating

There’s no shortage of oys in the world but Jewish News takes every opportunity to celebrate the joys too, through projects like Night of Heroes, 40 Under 40 and other compelling countdowns that make the community kvell with pride.

Pioneering

In the first collaboration between media outlets from different faiths, Jewish News worked with British Muslim TV and Church Times to produce a list of young activists leading the way on interfaith understanding.

Campaigning

Royal Mail issued a stamp honouring Holocaust hero Sir Nicholas Winton after a Jewish News campaign attracted more than 100,000 backers. Jewish Newsalso produces special editions of the paper highlighting pressing issues including mental health and Holocaust remembrance.

Easy access

In an age when news is readily accessible, Jewish News provides high-quality content free online and offline, removing any financial barriers to connecting people.

Voice of our community to wider society

The Jewish News team regularly appears on TV, radio and on the pages of the national press to comment on stories about the Jewish community. Easy access to the paper on the streets of London also means Jewish News provides an invaluable window into the community for the country at large.

We hope you agree all this is worth preserving.