In the Asian session on Wednesday (May 31), GBP/USD rose slightly, temporarily reporting 1.2412, an increase of 0.04%. Strategist Matthew Ryan said the pound would benefit as the Bank of England looked set to raise interest rates further.
Bank of England news:
Strategist Matthew Ryan said: “Our optimism on sterling is based on this outlook, as well as the resilience of domestic demand in the UK. Most signs point to relatively modest economic growth in the UK this year, but this has been much better than previously expected and growth Forecasts continue to be raised.” The market expects the Bank of England to raise interest rates more than 4 times, and does not rule out the possibility of peak interest rates rising above 6.0%, currently at 4.5%.
