Interbank Market News Scan: I expect that the GBP-USD will continue inching up

As of 10:03 am EST, I haven’t seen any news out of the Bank of England discussing modifications to findings in its August monetary policy report.  The current bank rate set by the Bank of England is 0.1% with a target rate of inflation at 2.0%.  The Bank of England currently purchases GBP895 million in government bonds in an attempt to keep borrowing rates low for consumers and businesses. 

The Bank of England expects inflation to continue rising over the Bank’s current 2.0% target for the next two years before falling back to the target.

OANDA reports a .41% increase in the GBP-USD exchange rate between 30 August and 7 September with an exchange rate of 1.3839 as of 10:03 am EST.  As of 10:17 am EST, Reuters reports an exchange rate of 1.3780 while Bloomberg reports an exchange rate of 1.3787.

There is a hearing scheduled at 11:00 am EST on 8 September 2021 to discuss the Bank of England’s August monetary policy report.  The London market closes today at 11:30 am EST.    

Alton Drew

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Interbank market news scan: Central banks

Follow the links …

China leads in precision-guided central banking. Does it work? https://www.economist.com/finance-and-economics/2021/02/13/china-leads-in-precision-guided-central-banking-does-it-work

Burkhard Balz of Deutsche Bundesbank on the future of central bank-issued digital currency. https://www.bis.org/review/r210211e.htm

Francois Villeroy de Galhou of the Bank of France on central banks’ role in the greening of the economy. https://www.bis.org/review/r210211g.htm

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 12:38 pm EST Exchange Rate as of 11 February 2021(2)
AUD/USD0.7656 0.7749
USD/CAD1.2781 1.2689
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2121
USD/INR72.8500 72.7080
GBP/USD1.3714 1.3820
USD/JPY105.4400 104.6800
USD/MXN20.1300 19.9915
USD/DKK6.1785 6.1327
USD/NOK8.5428 8.4619
(1)Federal Reserve; (2) Reuters

11 February 2021