The British Pound rose today to a 2-week high as rising risk appetite, policymakers' statements that BoE to not delay rate hikes. The possibility of a rate hike rose by 80%.
Following comments by Ian McCafferty, a member of the Bank of England's monetary policy committee who was one of the voters for the rate hike at the last meeting, in which he said he thought wage growth was stronger than his colleagues saw, GBPUSD rose to 1.4187.
April is usually a strong month for the pound as UK corporate earnings boost the pound in April each year for the last 14 years.
On the other hand, the US dollar fell to a two-week low against a basket of currencies in the wake of Chinese President's promises to reduce import tariffs, easing concerns about the trade dispute. High-yielding currencies such as the Australian dollar, New Zealand dollar and the Canadian dollar benefited.
The US producer price index rose by 2.7% on yearly basis in March, better than market expectations, the US dollar recovered slightly before falling again, and the dollar index currently trading at 89.25.
ECB member's comments on the possibility of raising interest rates on deposits as a first step in rate hikes have also played a significant role in the euro's rise to a record high against the US dollar since March 28 at 1.2376.
