Pound rallies on hawkish Bank of England rate hike
TLT•The pound rallied after the Bank of England raised rates and signaled further increases in coming months. The US dollar recovered as risk appetite faded, while the Australian and New Zealand dollars fell.
1. Currencies react to rate decision
The pound rallied after a hawkish Bank of England rate hike, with policymakers unanimously backing tighter policy and one official favoring a larger increase. The US dollar recovered as fading risk appetite boosted safe-haven demand; US non-farm payrolls could drive trading, with expected faster job growth potentially supporting the currency. The Australian and New Zealand dollars fell amid risk aversion.
