Friday, May 25, 2018

© Reuters.  Sterling was higher on Monday. © Reuters. Sterling was higher on Monday.

Investing.com – The pound rose against the dollar on Monday as investors wait for the Bank of England rate hike decision later in the week.

GBP/USD rose 0.46% to 1.3192 as of 12:05 PM ET (4:05 PM GMT). Markets expect the Bank of England to raise interest rates by 25 basis points on Thursday.

The euro was also up, as political uncertainty around Catalonia independence eases. The region declared independence on Friday, as Madrid took direct control of the region. EUR/USD was trading at 1.1624, up 0.14%.

The dollar fell slightly following a report that United States President Donald Trump was considering nominating Federal Reserve Governor Jerome Powell as head of the Fed, who is seen as being less hawkish.

The Fed is also holding a two-day policy meeting on Tuesday and Wednesday, where rates are expected to hold, despite a flurry of data underlining the case for the Fed to raise interest rates.

In September, U.S. consumer spending rose the most in over eight years, data showed on Monday. Meanwhile data on Friday showed U.S. economy grew at a 3% annual rate in the third quarter, better than forecasts for growth of 2.5%.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.21% to 94.52. The dollar also slipped against the yen with USD/JPY decreasing 0.50% to 113.11.

Meanwhile in Canada, the dollar was up against the loonie, with USD/CAD rising 0.21% to 12835.

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