HomeFinancial MarketsPounds Heads for One-Month Low Ahead of BoE Decision

Pounds Heads for One-Month Low Ahead of BoE Decision

Stocks on the London Stock Exchange fell and the British pound hovered near a one-month low on Thursday as investors anxiously anticipate the latest interest rate decision from the Bank of England.

Against the U.S. dollar, the pound fell 0.2% to $1.2688; just shy of its one-month low of $1.2680. The FTSE 100 index slumped by 1.46% to a two-week low as well as a third consecutive day of losses.

Markets are largely betting on the Bank of England raising interest rates from 5% to a 15-year high of 5.25%. Still, markets are attributing a 40% probability to the central bank raising interest rates by a half-point as it did in June.

Another concern among investors is Fitch’s recent decision to downgrade the U.S. economy, thereby causing global share markets to decline.

Given that markets expect a 50 basis point interest rate hike, Lee Hardman, senior currency strategist at MUFG, observed that a 25 basis point hike would likely weaken the pound further.

Warner Bros, Discovery Looking to Split Businesses to Boost Its Stock

Warner Bros. Discovery, the entertainment conglomerate behind cable network HBO, Warner Bros. film and TV studios, and streamer Max, is exploring several options that...

Domino’s Pizza Stock Falls Amid Worse-Than-Expected Sales in Q2

The shares of Domino’s Pizza tumbled 12% on Thursday after the pizza restaurant chain reported worse-than-expected sales in the second quarter and adjusted its...

Ray-Ban’s Owner EssilorLuxottica Acquires Streetwear Brand Supreme in $1.5 Billion Deal

Italian-French corporation EssilorLuxottica, which owns the legendary sunglasses and eyeglasses brand Ray-Ban, has acquired streetwear maker Supreme from VF Corporation in a $1.5 billion...