GBP Rises as November Rate Hike Bets Build, Oil Prices Surge

The Pound (GBP) rose against most major currencies on Monday as investors increasingly priced in the prospect of another Bank of England (BoE) interest rate increase in November.

At the time of writing, the GBP/EUR exchange rate was trading at around €1.1661, representing a gain of roughly 0.3% from Monday’s opening levels.

The expectation of further monetary tightening was reinforced by comments from BoE Governor Andrew Bailey late last week and a sharp rise in oil prices, with Brent crude climbing almost 4% on Monday to move above $108 a barrel.

The Euro (EUR) struggled on Monday as renewed demand for the US Dollar (USD) put pressure on the single currency, while European gas prices also rose due to concerns over energy costs.