GBP/USD Pair Increased Even if UK Rates Forecasted to Rise

 

USD UKOn Friday, the GBP/USD pair increased to an all-time high in 6 weeks as news of higher interest rates in Britain could happen earlier than expected. The Fed statement released recently that interest rates may be increased by December added more to the speculation.

One of the reasons for the pair’s boost might have been over speculation ahead of the Quarterly Inflation Report of the BoE to be released next week. The report will reveal a decision on the rates as well as the minutes of the last Monetary Policy Meeting. Traders also said that the dollar has weakened so that it bolstered the increase in the pound Forex rate.

The EUR/USD pair regained a 1.1000 level last Friday due to speculative buying to cover for the “sleep” period.
The Euro was able to regain from its earlier loss after the US Fed Reserve report that include data on the economy that included housing and GDP. The report showed a weak dollar which may rule out an increase of interest rates by December.

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