- BoE hikes by 75 bps, sterling drops
- Fed funds futures see rates peaking at 5.1% in June
- Focus on U.S. non-farm payrolls
- U.S. dollar dominance to continue -trader
NEW YORK, Nov 3 (Reuters) – The dollar gained against major currencies on Thursday after Federal Reserve Chair Jerome Powell signalled U.S. interest rates will likely peak at a higher level than markets expected, while sterling fell after the Bank of England raised rates but warned of a “very challenging outlook.”
The BoE lifted UK interest rates to 3% from 2.25% in its largest single increase since 1989, as it battles the twin forces of a slowing economy and red-hot inflation.
The central bank forecasts inflation will hit a 40-year high 11% during the current quarter, but it pushed back against expectations for further steep rate hikes. The bank said Britain has already entered a recession that could potentially last two years, longer than during the 2008-09 financial crisis.
The…
