GBP to USD Exchange Rate Hikes as the Focus Shifts to BoE

On Thursday, the GBP to USD exchange rate hiked as the market focus shifted to the Bank of England’s meeting later this day.

The British pound edged up 0.29% to $1.37, paring its Wednesday loss of 0.25% to $1.36.

Accordingly, investors looked forward to the tone of the BoE’s decision as they expected a tighter monetary policy in 2022. 

In addition, traders kept an eye close to the Monetary Policy Committee’s votes, which tends to be the most significant part of the discussion. 

Moreover,  the market widely expected that the UK central bank would keep its interest rates steady at 0.10%.

Consequently, the anticipated decision could infuse volatility to the GBP to USD exchange rate.

In addition, the quantitative easing total is unmoved at $1.20 trillion.

Subsequently, the estimated GfK Consumer Confidence remained at 8.00 points. 

Furthermore, the Composite Purchasing Managers’ Index decreased to 54.10 from the previous level of 54.80.

Also, the UK Manufacturing PMI plunged to 56.30 from the August data of 60.30.

Meanwhile, the US dollar index, which traces the greenback against its six rival currencies, shed 0.30% to $93.18.

On Wednesday, Fed Chair Jerome Powell noted that asset purchases could halt in mid-2022, paving the way for an earlier interest rate hike.

Consequently, most Asia-Pacific currency pairs declined as the GBP to USD exchange rate increased. 

The Singapore dollar plummeted 0.41% to $1.35 as the Hong Kong dollar shed 0.02% to $7.79.

Likewise, the South Korean won fell 0.83% to $1,172.03 as the Chinese yuan dropped 0.06% to $6.45.

Then, the Indian rupee tumbled 0.17% to $73.70 as the Malaysian ringgit decreased 0.26% to $4.18.

Euro to Dollar Exchange Rate Up as the GBP Hiked

Meanwhile, the euro to dollar exchange rate rebounded as the GBP to USD exchange rate hiked.

The euro extended 0.23% to $1.17, recovering from its consecutive lows this week.

Moreover, the Spanish gross domestic product edged up to 1.10% from its previous rate of 0.60%.

However, it came in lower than the analysts estimate of 2.80%.

In France, the Manufacturing PMI tumbled to 55.20 from the previous number of 57.50. Also, it declined from the analysts’ forecast of 57.00.

Elsewhere, the Swiss franc plunged 0.10% to $0.93 as the Canadian dollar fell 0.82% to $1.27.

Consequently, the Japanese yen soared 0.08% to $109.88 as the Australian dollar amplified 0.40% to $0.73.