Demand is high for the monetary unit of England amid confidence for the currency's upward drive, according to Bloomberg.
Coming off a week when the English pound climbed to its top rate since August 2009, the pound is projected to continue pushing ahead as the regional economy continues strengthening and the Bank of England drives toward a rate hike sooner than expected.
"In a world that's been starved of significant moves, which has become used to low volatility in the foreign-exchange market, when something like this suddenly emerges, you could see quite a big move develop," chief currency strategist Simon Derrick with Bank of New York Mellon Corp. in London told the news source later last week. "For the last few years clearly you've been in a $1.50-$1.70 world, so the idea you could suddenly break through that opens up a lot of new territory."
Thus far this month, the pound has risen about 1.6 percent against the world's reserve currency.
Reuters reports the interest rate hike by the Bank of England, which said it did not want to boost borrowing costs until the economy showed signs of growth, is likely by the end of the year.
Risk Disclosure
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
