Potential BoE Rate Hikes Push Pound Upwards

Through the session on Friday, the Pound was boosted by improved optimism that a resolution would be found to bring an end to the dispute around the Northern Ireland protocol.

There was further support for the currency in the form of a potential Bank of England rate hike this year which is likely to be implemented at its December Meeting. As a result, the currency rounded off the day at 1.185 against the Euro and 1.3745 against the US Dollar according to the Foreign Exchange Market.

The Euro lost ground against many of its rivals at the end of the week after dovish comments from the European Central Bank suggested that inflationary pressures are only temporary. This dampened support for the single currency and with a lack of data today, it looks as though the currency could see further losses.

It was a mixed day for the US Dollar as a rise in US retail sales came unexpectedly and helped to give the Greenback a boost, even though it also helped to improve the market mood. With a change in mood and investors taking risks, it means that the safe-haven currency traded in a narrow range on Friday.

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