Forex Today: All eyes on BoE rate decision
Here is what you need to know on Thursday, September 17:
The British pound (GBP) gained strength, nearing 1.3400 against the US dollar, on Thursday as markets awaited the Bank of England (BoE) rate decision. The US Dollar Index (DXY) had reclaimed the psychologically significant 100.00 level following the Federal Reserve's (Fed) 25 basis point (bps) interest rate hike on Wednesday. Fed Chairman Kevin Warsh highlighted that inflation had been "too high ... for too long," and a majority of Fed officials believed another hike was possible later in the year.
Money markets forecasted a 49.8% probability of a Fed rate increase in October. The US Dollar was the strongest against the Canadian Dollar in the latest update. The European Central Bank (ECB) also raised rates by 25bps last week but signaled no further increases for now. Meanwhile, Iran vowed to continue fighting until all its conditions were met, rejecting any possibility of resuming peace talks.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
