Fed Rate Hike Spurs Focus on BoE Policy and Currency Moves

Following the Fed's September rate hike, attention turns to the Bank of England's potential moves as the British Pound hovers near a three-month low and the Euro shows recent declines.

The Federal Reserve raised interest rates in September, sparking discussions about possible responses from the Bank of England. According to FX Street, Standard Chartered’s Christopher Graham emphasized that the Fed’s tightening alone does not compel the Bank of England to act, highlighting the importance of UK economic data and the Bank’s market credibility.

On Friday during the European session, the British Pound traded slightly higher at around 1.3220 USD, near its almost three-month low of 1.3200 USD. Meanwhile, the Euro remained flat at about 1.1380 USD after falling 0.8% this week and nearly 2% over the last two weeks, FX Street reported.

For Japanese investors, these developments are significant as shifts in UK and US monetary policies continue to influence global FX markets, impacting yen crosses and risk sentiment in equities and crypto.

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執筆: Sama Kane