The pound sterling rose to the highest level in 15 months before Andrew Bailey's comments

The pound sterling rose in the European market on Wednesday against a basket of global currencies, to extend its gains for the fifth day in a row against the US dollar, recording the highest level in 15 months, a few cents away from reaching the psychological barrier at 1.3 dollars, before the press conference of the governor Bank of England Andrew Bailey on the Financial Stability Report

The US currency continues its losses in the foreign exchange market, ahead of the release of key inflation data in the United States in June, which shows the extent of inflationary pressures on monetary policy makers at the Federal Reserve.

British pound exchange rate today

The pound rose against the dollar by 0.3% to $1.2970, the highest since April 2022, from the opening price of trading at $1.2932, and recorded the lowest level today at $1.2930.

Yesterday, the British pound rose by 0.55% against the US dollar, the fourth consecutive daily gain, after data showed a rise that exceeded expectations in British wages during May.

Average wages in Britain rose by 6.9% in May, the fastest pace in 14 months, exceeding expectations for a rise of 6.8%, and recording a rise of 6.5% in April.

This data shows the continued mounting pressure on monetary policy makers at the Bank of England and the need to continue the more aggressive path of tightening monetary policy and raising British interest rates. ‏

City Index chief market analyst Matt Simpson said the Bank of England is under pressure after the latest employment and wage figures, as it is likely to force them to raise another 50 basis points during their next meeting, and get an interest rate higher than 6%.

Andrew Bailey

By 08:00 GMT, the press conference of the Governor of the Bank of England, Andrew Bailey, will start to talk about the financial stability report, as it is expected to include new signals about the future of interest rates in the United Kingdom.

British interest

The market is currently pricing in speculation that the Bank of England will raise UK interest rates by around 50 basis points during its August 3rd meeting, awaiting UK inflation data due next week.

Economists at the American investment bank JPMorgan expected that the Bank of England would raise interest rates to 5.75% by the next November meeting, and warned of the possibility of the Bank of England continuing to raise interest rates, if its expectations for the level of inflation were not met or If it stays above 7%

dollar index

The dollar index fell by 0.25%, deepening its losses for the fifth session in a row, recording the lowest level in two months at 101.34 points, reflecting the continued decline in the US currency levels against a basket of major and minor currencies.

This drop comes ahead of the release of key US inflation data later in the day, which will provide a fresh pricing in the prospects for a US interest rate hike during the Federal Reserve's July-September meetings.