Francesco Pesole, analist at Holland International, stated in a report on January 15th that the positive reaction of the pound to lower-than-expected UK inflation data highlights that the pound, like emerging market currencies, moves in sync with borrowing costs. He mentioned that after the lower-than-expected inflation data strengthened expectations of a rate cut by the Bank of England in February, the pound usually experiences a decrease. However, the pound rose against the dollar from 1.2198 before the data release to around 1.2220, while the euro fell against the pound from 0.8443 to around 0.8435. 'This once again proves that the pound is behaving like an emerging market currency, being more sensitive to long-term borrowing costs than to short-term prospects of the central bank.'
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Hollanda Uluslararası: Sterlin gelişmekte olan piyasa para birimleri gibi performans gösteriyor.
Francesco Pesole, analist at Holland International, stated in a report on January 15th that the positive reaction of the pound to lower-than-expected UK inflation data highlights that the pound, like emerging market currencies, moves in sync with borrowing costs. He mentioned that after the lower-than-expected inflation data strengthened expectations of a rate cut by the Bank of England in February, the pound usually experiences a decrease. However, the pound rose against the dollar from 1.2198 before the data release to around 1.2220, while the euro fell against the pound from 0.8443 to around 0.8435. 'This once again proves that the pound is behaving like an emerging market currency, being more sensitive to long-term borrowing costs than to short-term prospects of the central bank.'