Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
British Pound Outlook: Hawkish Twist By BoE’s Saunders Sends Sterling Sharply Higher

British Pound Outlook: Hawkish Twist By BoE’s Saunders Sends Sterling Sharply Higher

Nick Cawley, Senior Strategist

British Pound (GBP) Price Outlook

  • Sterling rallies on hawkish twist by BoE policy maker.
  • GBP/USD eyes 1.3900
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Get Your Free GBP Forecast
Get My Guide

The British Pound is powering higher after BoE policy maker Michael Saunders suggested during a speech on inflation that if activity and inflation indicators remain in line with recent trends and downside risks to growth and inflation do not rise significantly ‘ then it may become appropriate fairly soon to withdraw some of the current monetary stimulus…’. Saunders went on to say that one option would be to curtail the current QE program – set to end at the end of this year – in the next month or two and ’before the full GBP150 has been purchased’. Saunders also said that further monetary policy action next year may also be an option.

The Inflation Outlook – Speech by Michael Saunders

This hawkish turn by Saunders has seen Sterling turn sharply higher, pressing back against 1.3900 against the US dollar. EUR/GBP has also turned lower and is nearing 0..8510 and yesterday’s multi-month low around 0.8500.

GBP/USD 5 Minute Price Chart (July 15, 2021)

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on Sterling– bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES