Global Exchange Rate
Researched by Araba, Olawale Enifenilanfe Sterling edged up from a new 21-month low against the dollar hit earlier on Wednesday after Britain’s weak economic outlook and higher than expected government borrowing dented the Bank of England’s (BoE) monetary tightening narrative. Money markets have been scaling back bets on the size of BoE rate hikes, pricing in 144 basis points (bps) worth of tightening by year-end from 160 bps last Friday. The pricing was at 140 bps late on Tuesday. [IRPR] Data showed that government borrowing in the 2021/22 financial year was almost 20% higher than forecast. British retail sales slumped in April, with the first fall in volumes in more than a year, reflecting a cost-of-living squeeze and changes in spending patterns and adding to signs of a slowdown in the economy. Unicredit forex strategist Roberto Mialich said he expected a further scaling back of expectations for BoE monetary tightening in the medium term as he forecast the BoE to raise its policy ra...