Pound Sterling Builds on Gains Against Euro and Dollar After Traders Throw the Towel In on a Thursday Rate Cut
- Category: EUR
Pound Sterling rose against the Euro and Dollar following the release of UK inflation data for August that showed a pick-up in the pace of price rises in the UK.
We forecast Pound Sterling to trade on the soft side against the Euro this week but don't see Wednesday's UK inflation report or Thursday's Bank of England decision having a lasting negative impact. Wednesday's Federal Reserve rate cut could prove supportive from a global perspective.
Pound Sterling has recovered against the Euro alongside improved market sentiment and we see two credible upside targets for the exchange rate.
The European Central Bank (ECB) cut interest rates and showed it was in no rush to deliver the next one, a stance analysts say can underpin the Euro.