The British pound has recently performed strongly. On June 22, the British Bank of England (BOE) interest rate resolution has risen sharply. Last week, it rose by 2%to refresh the high point of nearly 14 months! So can the British/US dollar challenge 1.30?
In terms of pounds, the employment data released by the UK last week was stronger than expected, and the worse thing is that the salary growth rate was also exceeded. In addition, the three -month GDP growth rate from Britain to April was 0.1%, and the annual rate was 0.5%.The Bank of England's sole resistance to the eagle policy: there is no need for economic recession, and various factors have supported the Bank of England to continue to raise interest rates, so that the British pound continues to strengthen
The strong pound is also due to the strength of the euro/dollar.The Federal Reserve's hawks were suspended and failed to completely reverse the US dollar. The euro zone expressed a tough interest rate hike attitude, and the rise in the euro/USD has driven the pound/dollar to strengthen.
The market is expected to raise interest rates at 25 points this month, so Macro believes that the pound/dollar will continue to strengthen. It is a high probability event.Not only that, the yield of British Treasury bonds in the United Kingdom has hit 5%, the highest level in the past 15 years. It is not impossible to increase interest rates by 50 basis points tomorrow.
