British Pound rises as Fed’s Waller tempers Fed hike bets before NFP
The Pound Sterling rises against the US Dollar on Thursday, as Fed Governor Christopher Waller favors holding the rate unchanged, shifting to a more neutral stance regarding monetary policy, while data showed that the US labour market is solid and that business activity improved.
The British Pound Sterling experienced a rise against the US Dollar on Thursday after Federal Reserve Governor Christopher Waller signaled a more neutral approach to monetary policy. This shift in sentiment led to a decrease in the probability of a 25-basis-point rate hike from 60% to 54%, as traders reassessed their expectations.
The US labor market remained robust, with improved business activity and a slight increase in unemployment claims, indicating a tight job market. Meanwhile, the Bank of England's Chief Economist, Huw Pill, expressed concerns about potential inflationary pressures, suggesting a possible rate hike to 4%. Traders now focus on the upcoming US Non-Farm Payroll figures for insights into the broader economic outlook.
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Also reported by 1 other outlet
- Yen jumps on BOJ hike bets, dollar slips on Waller comments channelnewsasia.com
