rates's blog

Market Update-4th July 22

GBP/USD dropped below 1.2000 for the second time in June, however it has managed to
recover back above 1.2000 by Friday last week. Both USD/CAD are being restrained by
higher oil prices and USD/JPY are declining on broader risk aversion. The European Central
Bank (ECB) are trying to balance the surging inflation and the need to raise the rates
because of this. ECN are likely to raise the rates by 0.25% in September due to inflation
slowing down materially. Despite the news on inflation, the Euro finished last week towards

Following its November policy meeting, the Bank of England's Monetary Policy Committee (MPC) chose to maintain the benchmark interest rate at 0.1 per cent. Even though this decision was in line with market expectations, market pricing indicated a 50% possibility of a rate rise of 15 basis points. Following the first market reaction, the British pound came under heavy selling pressure, and the GBP/USD pair was last spotted at 1.3580, down 0.75 per cent on the day.