"City traders polled about the Bank of England’s intentions at this week’s Monetary Policy Committee meeting are certain that there will be another 25BP hike this Thursday. This will be the first time there have been consecutive increases since 2004.

The hike is now 100 priced into the interest rate markets. This is an increase on last week when the expectation of an increase was 90%.

With inflation at its highest level since 1992 traders are experiencing historic events that are outside the experience of many.

Inflation is currently closing in on 6%. The latest official data put the headline rate at 5.4%, but prices are clearly continuing to rise at a rapid rate. The employment market is also booming with the unemployment rate 4.1% which is close to historic lows.

Speculation is growing about what official rates will be at the end of the year. It is possible that they could have risen as high as 1.75%, but most see a rate of 1.25% at year-end.

"

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.