Pound US Dollar (GBP/USD) Exchange Rate Climbs on BoE Rate Decision

November 10, 2024 - Written by John Cameron

STORY LINK Pound US Dollar (GBP/USD) Exchange Rate Climbs on BoE Rate Decision

The Pound to US Dollar (GBP/USD) exchange rate rose on Thursday as markets responded to the Bank of England’s (BoE) latest interest rate decision.

The Pound (GBP) appreciated on Thursday after the BoE announced its latest interest rate decision.

As anticipated, the BoE implemented a 25bps rate cut following its November meeting, marking the second reduction this year.

However, there was some dissent amongst the Monetary Policy Committee, with one member voting to leave rates on hold this month

Alongside BoE Governor Andrew Bailey’s comments on the inflationary impact of Chancellor Rachel Reeves’s recent budget, this lead investors to scale back expectations for additional rate cuts, giving the Pound a boost.

The US Dollar (USD) traded steadily in the European session on Thursday as markets absorbed Donald Trump’s clear victory in the US presidential election.

USD exchange rates surged on Wednesday, driven by expectations that Trump’s policies may boost inflation and prompt rate hikes,

However, some of these gains were subsequently trimmed on Thursday as concerns over the potential long-term impact these policies could have on the US economy triggered a bout of profit taking from USD investors.

Traders also seemed reluctant to make any aggressive bets on the US dollar ahead of the Federal Reserve’s own interest rate decision on Thursday evening.

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