The British Pound gains against its major peers despite BoE’s Bailey signaling no rush for tightening monetary conditions.
BoE’s Bailey clarified that interest rate hikes would be needed if second-round effects of inflation start emerging.
The US Dollar trades flat at the start of the US NFP data week.
The British Pound (GBP) trades higher against its major currency peers, but is broadly flat around 1.3455 against the US Dollar (USD), during the European trading session on Monday. The United Kingdom (UK) currency gains even as Bank of England (BoE) Governor Andrew Bailey has signaled that the central bank does not need to rush for interest rate hikes, while warning that the Middle East conflict-led shock has raised concerns over the economic outlook.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.00% | -0.08% | 0.13% | 0.13% | 0.04% | 0.34% | 0.27% | |
EUR | -0.01% | -0.08% | 0.09% | 0.14% | 0.08% | 0.34% | 0.25% | |
GBP | 0.08% | 0.08% | 0.17% | 0.19% | 0.10% | 0.39% | 0.31% | |
JPY | -0.13% | -0.09% | -0.17% | 0.02% | -0.07% | 0.23% | 0.14% | |
CAD | -0.13% | -0.14% | -0.19% | -0.02% | -0.09% | 0.20% | 0.12% | |
AUD | -0.04% | -0.08% | -0.10% | 0.07% | 0.09% | 0.24% | 0.20% | |
NZD | -0.34% | -0.34% | -0.39% | -0.23% | -0.20% | -0.24% | -0.08% | |
CHF | -0.27% | -0.25% | -0.31% | -0.14% | -0.12% | -0.20% | 0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
BoE Governor Bailey said at a conference in Reykjavik on Friday, “Softness in economy and uncertainty around Iran war shock means tolerating temporarily above target inflation is an appropriate way to approach the policy trade-off.”
However, BoE’s Bailey clarified that tolerance towards above-target inflation would start weakening if “signs of second-round effects begin to emerge”.
The scenario of the energy supply shock is unfavorable for an economy like the UK, which relies heavily on oil imports to meet its energy needs.
Meanwhile, the US Dollar trades flat at the start of the United States (US) data-packed week, especially the Nonfarm Payrolls (NFP) data for May, which will be released on Friday. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades calmly around 99.00.
Investors will pay close attention to the US official employment data to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook.
In Monday’s session, investors will focus on the US ISM Manufacturing PMI data for May, which will be released at 14:00 GMT.
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