🇬🇧 Sterling Forex Handbook November -updated

Outlook is bad, but not as bad...

DERBYSHIRE UK - Updated on Tuesday the 15th of November to include an update on the unemployment data as well as a revised format that aims to improve its readability.

INTENDED USE - This handbook aims to cover everything a Forex trader needs to know about the Sterling in order to better position themselves in the market.

• Sterling is the currency of the United Kingdom and nine of its associated territories

• The fourth most-traded currency in the foreign exchange market

• The fourth most-held reserve currency in global reserves

• The Bank of England is the central bank for sterling

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• The Bank of England is the central bank of the United Kingdom

• The Bank became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government

• The mandate is to support the economic policies of the government of the day but has independence in maintaining price stability.

• The Bank's Monetary Policy Committee (MPC) has a devolved responsibility for managing monetary policy.

• The Bank is headquartered in the City of London and is nicknamed ‘The Old Lady of Threadneedle Street’

-BANK RATE-

source: Bank of England

On the 3rd of November, the Bank Rate was hiked by 0.75 to 3.00 percent. This matched the market expectations and was higher than the 0.50 percent hike at the September meeting.

This is the eighth consecutive rate hike and the largest hike since 1989. The MPC remarked that further hikes may be required although at a lower peak than currently priced into markets.

The next meeting is on Thursday the 15th of December and the long term outlook is for higher rates although it is likely that rates will be less hawkish than expected.

The Bank of England is the Central Bank of the United Kingdom and monetary policy decisions are made by the nine members of the Monetary Policy Committee.

-Monetary Policy Summary Highlights (November)-

• 2% inflation target to sustain growth and employment.

• voted 7-2 to increase Bank Rate by 0.75 points to 3.00%.

• One member voted for 0.25 points, the other for 0.50 points

• Significant developments to fiscal policy since previous forecast

• Uncertainty around the outlook for UK retail energy prices has fallen to some extent following further government interventions.