Sterling edges down before BoE's Bailey speech
Reuters2026/10/08 09:32Money markets price more than 80% chance of BoE hike next month Two quarter-point BoE rate hikes fully priced in by February Bailey and Lombardelli voted to keep rates unchanged at last meeting By Samuel Indyk LONDON, Oct 8 (Reuters) - The British pound was down slightly against the dollar and the euro on Thursday ahead of a speech from Bank of England Governor Andrew Bailey that could shape expectations for the central bank's next policy move. Sterling GBP= was last down 0.2% against the dollar at $1.3185, just above a three-month low of $1.3181 reached last week. The pound was down about 0.1% against the euro, snapping a nine-day streak of gains. It was last at 84.79 pence per euro EURGBP=. "There are concerns about public debt and rising term premium in the UK gilt market, but so far the pound has been resilient," said Tommy von Brömsen, FX strategist at Handelsbanken. "Global focus is not on the UK much right now. It's more on Europe and more on the US." The euro has been under particular strain, falling to a 17-month low against the dollar as fiscal concerns in France pushed bond yields sharply higher, dampening expectations for further rate hikes from the European Central Bank. BOE IN FOCUS Investors are now awaiting speeches from the BoE's Bailey and policymaker Clare Lombardelli for any hints on whether the central bank could raise rates next month. Bailey and Lombardelli are perceived as centrists on the rate-setting Monetary Policy Committee so their speeches will be closely watched, after both voted to keep rates unchanged at the last meeting. "Any suggestion that they are ready to cross the Rubicon and vote for a hike could depress euro-sterling further today," said Chris Turner, global head of markets at ING. Money market futures imply a more than 80% chance of a rate hike next month, while two quarter-point hikes are fully priced in by the February meeting. (Reporting by Samuel Indyk; Editing by Alex Richardson) ((Samuel.Indyk@thomsonreuters.com))
By Samuel Indyk
LONDON, Oct 8 (Reuters) - The British pound was down slightly against the dollar and the euro on Thursday ahead of a speech from Bank of England Governor Andrew Bailey that could shape expectations for the central bank's next policy move.
Sterling GBP= was last down 0.2% against the dollar at $1.3185, just above a three-month low of $1.3181 reached last week.
The pound was down about 0.1% against the euro, snapping a nine-day streak of gains. It was last at 84.79 pence per euro EURGBP=.
"There are concerns about public debt and rising term premium in the UK gilt market, but so far the pound has been resilient," said Tommy von Brömsen, FX strategist at Handelsbanken.
"Global focus is not on the UK much right now. It's more on Europe and more on the US."
The euro has been under particular strain, falling to a 17-month low against the dollar as fiscal concerns in France pushed bond yields sharply higher, dampening expectations for further rate hikes from the European Central Bank.
BOE IN FOCUS
Investors are now awaiting speeches from the BoE's Bailey and policymaker Clare Lombardelli for any hints on whether the central bank could raise rates next month.
Bailey and Lombardelli are perceived as centrists on the rate-setting Monetary Policy Committee so their speeches will be closely watched, after both voted to keep rates unchanged at the last meeting.
"Any suggestion that they are ready to cross the Rubicon and vote for a hike could depress euro-sterling further today," said Chris Turner, global head of markets at ING.
Money market futures imply a more than 80% chance of a rate hike next month, while two quarter-point hikes are fully priced in by the February meeting.
(Reporting by Samuel Indyk; Editing by Alex Richardson)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Google (GOOGL.US) warns that new Australian cybersecurity regulations may cut off minors' access to Gmail
Google stated that a new cybersecurity bill in Australia could prevent minors from using Gmail.
Canaccord Genuity: Lowers Oklo's target price to $66
"No-drill dental filling" company vVardis (VVVV.US) launches a $214 million US IPO, scheduled to be priced this week.
Dental treatment company vVardis has announced the terms for its $214 million US IPO.
Crypto prices
More
