HomeFinancial MarketsSterling Set or Largest Six-Week Fall

Sterling Set or Largest Six-Week Fall

The British pound is set to suffer its largest loss in six weeks after taking a 2% hit following the Bank of England’s (BoE) largest interest rate hike in three decades. Overall, the pound is down 3.3% this week.

While the pound managed to gain 0.63% against the dollar at $1.12295 on Friday morning, this rise did little to offset the losses incurred throughout the rest of the week. The sterling fared slightly better against other currencies, rising by 0.26% against the euro to 87.115 pence per euro.

On Thursday, the BoE announced an interest rate hike of 75 basis points as it continues its struggle to suppress double-digit inflation. Currently, the United Kingdom is at risk of facing its longest recession in at least a century.

BoE chief economist Huw Pill looked to put investors’ minds at ease, stating on Friday that while interest rates continue to be raised, they will not be raised as high as investors have expected.

Now, attention turns toward the United Kingdom’s finance minister Jeremy Hunt, who is set to deliver a fiscal announcement on November 17. Hunt is largely expected to discuss a potential rise in taxes and a crackdown on public spending.

U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago

A study by real estate brokerage Redfin found that U.S. homeowners are remaining in their existing homes for longer than they did 20 years...

PCE Index Expected to Rise By Most in a Year

The personal consumption expenditures (PCE) price index, known to be the Federal Reserve's preferred inflation gauge, is expected to rise at its quickest pace...

Warner Bros. Discovery Misses Earnings Estimates

Warner Bros. Discovery fell short of expectations when releasing its fourth-quarter earnings on Friday. The company reported a revenue of $10.28 billion, missing the...