New York Money Market: Pound Strengthens as Bank of England Signals Interest Rat

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New York Money Market: Pound Strengthens as Bank of England Signals Interest Rates

The pound strengthened against the US dollar. In trading at the New York Stock Exchange last night (Oct. 19) after the Bank of England (BoE) signaled a policy rate hike.

The dollar index, which measures the dollar's movements against six major currencies in a basket of currencies, fell 0.24 percent to 93.7341 last night.

The pound was higher against the dollar at $1.3799 from $1.3730, while the euro rose to $1.1640 from $1.1610, and the Australian dollar rose to $0.7478 from $0.7417.

The dollar was stronger against the yen to 114.30 from 114.26, but was weaker against the Swiss franc to 0.9226 from 0.9232 and was weaker against the Canadian dollar at Level 1.2359 Canadian Dollar from 1.2376 Canadian Dollar level.

The pound strengthened on speculation that the BoE would raise interest rates at both November and December monetary policy meetings. and will continue to raise interest rates next year After BoE Governor Andrew Bailey signaled the BoE was likely to raise interest rates to cope with rising inflation.

However, the interest rate contract trading in the futures market indicates that Investors are expecting the BoE to raise its policy rate by 0.15% in November and 0.25% in December, as well as three more rate hikes in 2022, which will boost the BoE's policy rate. hit 1.25% level

For the latest US economic data released last night. The US Commerce Department said Homebuilding starts fell 1.6 percent in September to 1.555 million units, the lowest level since April. On the other hand, analysts expect it to rise to 1.620 million units from 1.580 million units in August. The start of building a house has been affected by the rise in building material prices. and labor shortage

Other U.S. economic data due this week include weekly unemployment claims, Philadelphia Fed October production, September second-hand home sales. ., Purchasing Managers Index (PMI) October Services Sector from Markit and the Purchasing Managers Index (PMI) for the October manufacturing sector from Markit.