Markets will be wary over developments in Ukraine with the risk of further upward pressure on food and energy prices due to the Ukraine counter-offensive and impact of the major dam breach in Southern Ukraine. The Euro overall drifted lower during Tuesday, although overall ranges were narrow with a lack of fresh incentives. GBP/USD will struggle to make headway in the short term and there is still a danger of a retreat to the 1.2320 area. In this context, the latest RICS survey on the housing market due for release in Asian trading on Wednesday is likely to be watched closely. Higher yields will tend to underpin the Pound for now, although the equation will change rapidly if there is evidence that higher interest rates are causing sustained damage to the economy. The Pound to dollar (GBP/USD) exchange rate found support below 1.2400 and settled around 1.2410 on Wednesday with buyers still unable to make any sustained headway.īoE expectations will remain pivotal for overall Pound developments. The UK construction data was mixed with the latest PMI data recorded net growth in the sector, but further contraction in the house-building sector and the sharpest underlying contraction for 14 years.īank of England (BoE) expectations held firm with the central bank expected to increase rates at least two more times with the possibility of four rate hikes to 5.50%. This would tend to undermine risk appetite and potentially underpin the US dollar.Ī more confident BoC take that inflation has peaked and a decision to leave rates on hold with less hawkish forward guidance would tend to support risk conditions. If the BoC increases interest rates and issues further warnings over inflation trends, there will be wider concerns that global central banks will have to be more aggressive. The Federal Reserve will announce its policy decision on June 14th with the ECB decision on June 15th and the Bank of England on June 22nd.Īt this stage, markets expect no change from the Fed while the BoE and ECB are both expected to opt for rate increases of 25 basis points.Īhead of these meetings, there will be a reaction to any central bank shifts in guidance ahead of the decisions.įollowing the Reserve Bank of Australia’s unexpected rate hike this week, Wednesday’s Bank of Canada (BoC) decision will also be important both for both the Canadian dollar and global markets.

Markets overall will tend to be held in tight ranges in the short term as markets wait for the forthcoming interest rate decisions. Subscribe to daily exchange rates by email »Ġ7.06.23: Bank of Canada Policy Stance Important for Near-Term Sterling and Euro Moves against the Dollar.Pound Sterling: Live market rates, 11:00 BST:.

Todays dollar to euro exchange rate