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Are The Fed Expected To Raise Ir Today

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Why is sterling strengthening against the $ when the fed are expected to raise rates today. Higher US rates than the UK should surely be seeing the £ weaken.

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It doesn't seem that there has been much of a movement on cable today, so far at least.

Euro has moved following German econ data.

The other reason why the $ may not be appreciating is exactly due to what you say, people are already expecting a rate rise so it is already factored into the market. No rise or 50 bp's would make the market move, or a change in the perceived sentiment from the statement.

G-Man

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Guest boredwaiting

Why is sterling strengthening against the $ when the fed are expected to raise rates today. Higher US rates than the UK should surely be seeing the £ weaken.

CNN this morning said that the market was expecting an increase in the interest rates...

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Guest wrongmove

Why is sterling strengthening against the $ when the fed are expected to raise rates today. Higher US rates than the UK should surely be seeing the £ weaken.

The rise today is no surprise. It has already been priced in by the markets.

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At the moment the market is expecting a rate rise from the Fed. Dramatic movements in the pound's value are much more likely when the Fed or BoE does something the market doesn't expect. For example, when US rates are a quarter point above ours the possibility of a BoE cut ought to make the market twitchy. At present I don't think anyone is seriously expecting a sterling cut soon. But a couple of pieces of bad economic news in the UK could change all that.

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It's going up. Nobody is really sure how far though.

Most large US banks predict 5 - 5.5% and since they control 5/12ths of the vote they are a pretty good indication.

However, watch out for them revising that figure.

This is already reflected in the currency markets.

On a seperate note it seems the larger banks are currently in a process of buying up infrastructure such as ports and airports. Trying to secure future incomes perhaps?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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