Sterling rises against the dollar after QE talk in the U.S

After the recent declines sterling clawed back some ground against the US dollar on Wednesday. Rates climbed back over $1.55 and reached a high of $1.5512, moving away from the five month low witnessed last week following a run of poor data from the UK.

There was very little from the UK in terms of data releases on Wednesday as markets re-opened following the extended bank holiday. Sterling rose against the greenback largely thanks to comments made by Dennis Lockhart (Atlanta Federal Reserve President). His comments added to speculation that more quantitative easing could be on the cards to boost the U.S economy.

Tomorrow (Thursday) all eyes will once again be focused on the Bank of England (BoE) as they release their interest rate decision. It is widely expected the bank will keep interest rates and quantitative easing (QE) on hold, but following last weeks disastrous manufacturing data it is possible further stimulus could be on the horizon. If QE is put on hold it will be interesting to see how policy makers voted when the minutes are released in a couple of week’s time, especially as some policymakers were ‘finely balanced’ after last months vote.

If you need to buy or sell dollars in the coming weeks it is important to understand what options are available in order to protect yourself during these volatile times. Click here to send me a direct email or complete the contact form on the homepage of the blog for a no obligation consultation.