UK Pound Gets Boost on Forecasts

UK pound is mostly higher today, getting some help from better performances by commodities, as well as improved forecasts for next year.

Sterling is moving mostly higher today as most of the market awaits an announcement from the Federal Reserve. With commodities regaining some lost ground, high beta currencies and commodity currencies are getting a little help.

UK pound is also getting some help from the better forecasts for UK manufacturers in the coming year. Even though the EEF is reporting recent slumps and a downward revision to this year’s forecast, the expectation is for more optimism next year.

While the sterling will likely remain behind the dollar in the long-term as it relates to interest rate hikes, there are hopes that the Bank of England will see fit to begin its own rate hikes in the relatively near future. If the UK economy continues to improve, there is a good chance that we will see the BOE take steps to tighten monetary policy and raise rates to keep pace with the United States.

At 14:30 GMT GBP/USD is higher, moving up to 1.5125 from the open at 1.5009. EUR/GBP is lower today, dropping down to 0.7251 from the open at 0.7259. GBP/JPY is heading higher, gaining to 184.7060 from the open at 184.6080.

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