The BOE meeting: a ray of hope for the GBP?
The Bank of England will release its monetary policy summary and announce the interest rate on September 19, at 14:00 MT time.
Greenback keeps to its 3.5-month peak
On Thursday, the US currency kept close to the peak of three and a half months versus the pack of other leading currencies. It’s because the revenue on 10-year American government bonds stood above 3%.
Showing the purchasing power of the US currency versus the group of six major currencies, the US dollar index accounted for 91.02, which is close to the high of 91.04, the highest outcome since January 12, displayed on Wednesday.
The evergreen buck keeps growing due to the surge in revenue of American government bonds as well as the prospects for accelerating the Fed's interest rate lift in 2018.
A higher interest rate normally acts as support for the US currency, as it makes dollar assets more tempting for profit-seeking traders. This week, the revenue of 10-year American government bonds surpassed 3% for the first time since 2014. That’s an indication of investor confidence in the good future of the American economy.
The evergreen buck dived against the Japanese yen. The currency pair USD/JPY sank 0.11% being worth 109.31 after it managed to renew a maximum of two and a half months of 109.46 during night trades.
The common currency remained stable against the evergreen buck. The currency pair EUR/USD was trading at 1.2167, a bit retreating from a 2-month minimum of 1.2158, recorded on Wednesday.
Market participants are waiting for the verdict of the ECB on monetary policy, which is expected to be adopted at a gathering on Thursday. Investors are eager to know whether the ECB officials became more confident in the estimates on the surge of inflation or not.
According to analysts' forecasts, the ECB is going to keep the interest rate intact and it’s going to keep the plan on continuing the financial incentive program until the end of 2018.
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The European trading session will be highlighted by the events for the British pound. Traders will pay special attention to the BOE meeting at 14:00 MT.
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