The English pound drove to its highest value since late 2012 against the common currency of the European Union as the trade week came to a close, after the chief of the Bank of England said the body he leads is considering an interest rate hike earlier than anticipated, according to Bloomberg.
The pound rose against 30 of 31 of its major rivals after Governor Mark Carney said increased interest rates might have an impact on the economic recovery. Yields on two-year bonds issued by the government of the U.K. pushed to their top level in nearly three years.
"Carney has helped deliver a repricing of the market," currency strategist Michael Sneyd with BNP Paribas SA in London told the news outlet on Friday. "Even from here there is more room for the market to bring forward rate hiking. We continue to like the pound."
The pound rose about 0.1 percent against the euro, marking an eighth consecutive day of advances.
The Independent reports interest rates in England presently stand at 0.5 percent, which marks an all-time low level.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
