US Non-Manufacturing PMI data beats expectations, fueling speculation of a possible Fed rate hike in November.
Boston Fed’s President Susan Collins urges patience in monetary policy decisions, emphasizing the Fed’s commitment to a 2% inflation target. continues its free fall against the US Dollar , after the Bank of England’s official comments suggest the central bank is about to reach its peak interest rates. This, and data from the United States showing business activity picked up, increases Federal Reserve hike expectations. The GBP/USD is trading at 1.2502 after hitting a daily high of 1.2588.
The appearance of BoE’s Governor Andrew Bailey at the parliament’s Treasury Committee weighed on the Pound, which is set to finish the week with solid losses. In his appearance, Bailey said the BoE is near the top of the cycle of higher interest rates and added that inflation is indeed coming down, but could inflation expectations also come down?