Sterling remains stable

20 Jun 2024 , 09:20 AM

The British pound remained generally stable on Thursday ahead of the Bank of England’s (BoE) rate announcement later in the day.

Currencies traded in tight ranges following a holiday in the United States, as investors focused not only on the BoE but also on central bank decisions in Switzerland and Norway.

Sterling last traded at $1.2719, up slightly from the previous session, while the euro gained 0.03% to $1.0747.

The dollar fell 0.05% against the yen to 157.99, although the Japanese currency stayed close to its over-one-month low of 158.255 per dollar set last week.

Against a basket of currencies, the dollar was barely changed at 105.23, some distance from last week’s one-month high.

The BoE is widely expected to keep interest rates unchanged on Thursday, with the focus on any guidance on when an easing cycle could begin.

While data released on Wednesday revealed that British inflation returned to its 2% target in May for the first time in over three years, the report’s specifics indicated significant underlying price pressures, shutting out the possibility of an early rate cut.

Meanwhile, the Australian dollar rose 0.01% to $0.6673, while the New Zealand dollar remained stable at $0.6131.

Data released on Thursday revealed that New Zealand’s economy expanded faster than predicted in the first quarter but remained soft. This had minimal impact on market expectations for the country’s interest rate prospects.

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