GBP
The British Pound overnight reacted positively against the Euro and Dollar in response to the Federal Reserve’s decision to raise interest rates a further 75 basis points.
The Fed decision was always regarded to be this week’s major market event with the decision to raise interest rates expected. Markets reacted positively to guidance that there would not be any acceleration in the pace the Fed intends to hike.
The Bank of England will almost certainly hike rates for a sixth time in August following data showing inflation in June surged to a 40-year-high of 9.4%.
USD
The Federal Reserve raised its key short-term rate by three-quarters of a percentage point for a second straight month last night in a bid to control soaring inflation, matching the largest increase since 1994.
Chairman Jerome Powell suggested the central bank could slow the pace of its rate increases in the coming months if there is evidence that tighter monetary policy is taming the worst U.S. inflation in four decades.
EURO
The Federal Reserve raised its key short-term rate by three-quarters of a percentage point for a second straight month last night in a bid to control soaring inflation, matching the largest increase since 1994.
Chairman Jerome Powell suggested the central bank could slow the pace of its rate increases in the coming months if there is evidence that tighter monetary policy is taming the worst U.S. inflation in four decades.
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