BoE’s Interest Rate Rise Leaves Pound Stronger

After the Bank of England announced an increase in the interest rate to 0.25% on Thursday, the Pound rose.

However, these gains were capped and this is because the currency was still being held back by concerns over the latest news surrounding the Omicron variant. Along with this, the PMI report was also worrying, all of which placed further strain on the currency. At the end of trading, the Pound finished at 1.1754 against the Euro and 1.3323 against the US Dollar according to the Foreign Exchange Market.

The Euro edged lower yesterday as the European Central Bank took a more hesitant stance when compared to the UK and the US. They chose not to alter interest rates but announced that the pandemic emergency purchase programme would come to an end in March. However, the losses were limited as investors grew in confidence based on the decisions that the ECB is making around monetary policy.

It was a quiet day for the US Dollar as it lost ground against many of its rivals even with the Federal Reserve choosing to speed up its tapering plans on Wednesday. This meant that the US Dollar remained fairly motionless through the session.

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