FXStreet
British Pound gathers strength to near 1.3300 on Fed policy uncertainty | FXStreet
xCruzo Brief
Sterling strengthened toward the 1.3300 area in early European trading on Friday, helped by hawkish remarks from Bank of England Governor Andrew Bailey and firmer UK GDP data. Bailey said soaring energy prices so far appear to have limited broader effects on British prices, though he cautioned it’s too early to judge second-round impacts. Markets are increasingly expecting the BoE to start hiking next month after holding policy since February amid the US-Iran war, according to a Reuters poll. On the US side, Fed governor Kevin Warsh said he will assess conditions at the October and December meetings, while IMF event remarks included no “prejudging” ahead of the Fed’s Oct. 27–28 meeting. CME FedWatch priced nearly a 27.1% chance of a hike.
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