FX:GBPUSD British Pound/U.S. Dollar
The British Pound rose for a third consecutive week against the US Dollar after a hawkish-sounding Bank of England Quarterly Report rekindled hike speculation, as expected. Governor Mark Carney reminded investors that tightening is the next most likely direction for , adding that the intends to look past near-term downside shocks from falling food and oil prices. Investors now price in at least one 25 basis point increase in the baseline lending rate over the coming 12 months, with markets reflecting bets on a move in the fourth quarter of this year.