Pound climbs as investors scale back rate-hike bets after crude plunge
Sterling gained as Brent crude fell 9%, easing inflation worries and cutting net short positions to $4.64 billion, CFTC data showed.
- On Monday, the pound rose 0.07% to $1.3330 against the dollar as Brent crude plunged 9% to $87.84 a barrel, easing energy-driven inflation worries ahead of the Bank of England's policy meeting.
- Hostilities had pushed oil prices above $100 a barrel last week before the U.S. and Iran paused strikes over the weekend, allowing crude to stabilize and ease inflation concerns.
- Two-Year gilt yields fell to 4.362%, reflecting cooling inflation expectations, while speculators reduced net short sterling positions to $4.64 billion in the week ended July 20 according to Commodity Futures Trading Commission data.
- The BoE is widely expected to maintain rates at 3.75% on Thursday, while Prime Minister Andy Burnham and John Healey signal continuity in financial services regulation to reassure investors.
- ING FX strategist Francesco Pesole believes the BoE will hold rates if inflation remains contained, though he warned that a "dovish repricing remains the clearest near-term risk for sterling.
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Limited upside for CAD against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret note USD/CAD is trading near fair value around 1.4115, with the Canadian Dollar (CAD) constrained by wide short-term rate differentials versus the Dollar. Softer Oil is a mild drag, and while a Fed hold could allow some CAD gains, they do not expect meaningful improvement until rate spreads narrow later in 2026. CAD capped by wide rate differentials “The CAD is holding little changed against …
The official currency operates at $1520 for sale; the blue dollar quotes at $1560 for that transaction
Look at the quote for the purchase and sale of the blue dollar today.The gap with the official dollar.
Pound climbs as investors scale back rate-hike bets after crude plunge
Sterling edged higher against the dollar on Monday as a sharp drop in oil prices eased worries about energy-driven inflation and tempered expectations for further Bank of England tightening ahead of this week's policy meeting.
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