by Damian -
Bank of England hints that rates could rise sixfold within the next three years.
US Dollar exchange rate
The US Dollar exchange rate has shown a modestly firmer tone since the employment report last week, but progress has been very modest in general, and there is no US news today to justify any independent move to buy US Dollars.
Pound Exchange Rate
The Pound exchange rate made all the papers last night with the general consensus that interest rates will have to rise. Whilst I personally am not happy about this it should at least help the pound. But did this happen – NO the pound fell against the Euro and the US Dollar! the only hope is that the pound can hold the 1.2000 level against the Euro and 1.6600 against the US Dollar.
Euro Exchange Rate
The ECB members are getting their knickers in a knot over the Euro Exchange Rate being to high – to me I have no idea why it is at 1.2000 against the pound where I like it higher than 1.2500. But whilst Draghi tells the market everything is fine and that Forex traders will stick with the herd.