British Pound Sees Mixed Recovery on BOE Rate Hike Bets
The British pound has shown mixed recovery against major currencies as traders increase bets on another interest rate hike by the Bank of England (BOE) in November. While the pound is gaining against a weaker euro, Swiss franc, and New Zealand dollar, it faces pressure from a stronger US dollar and Japanese yen. Recent economic data, including a sharp rise in output prices in September, has revived expectations of further hawkish moves by the BOE.
Several members of the BOE's Monetary Policy Committee (MPC) have reinforced these hawkish bets through their communications. The pound also shows potential to strengthen against the Canadian dollar and Australian dollar. However, its overall performance remains inconsistent due to varying strengths of other currencies.