# British Pound: Supported by BoE hike expectations and softer Dollar – MUFG

> MUFG's Lee Hardman said the pound benefited from broad dollar weakness after the US midterm elections, with GBP/USD briefly above 1.3500 and EUR/GBP near 0.8300. Markets expected the Bank of England to deliver its first rate hike since the US-Iran conflict began, with a 25 bp move almost fully priced.

- Date: 2026-11-05 · published 2026-11-05T12:08:50.665Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/81637-british-pound-supported-by-boe-hike-expectations-and-softer-dollar-mufg
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher UK rates and a softer dollar shape currency conversion for sterling and dollar-priced feed imports. MUFG expects fewer BoE hikes than priced after oil fell sharply, which limits how far sterling strength can extend.

## Read by commodity

- DXY: neutral
- GBPUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-07-31 | [British Pound US Dollar X-Rate Forecast Warning: No BoE Hike Would Crush GBP/USD To 1.28](https://feedsoft.ai/events/64275-british-pound-us-dollar-x-rate-forecast-warning-no-boe-hike-would-crush-gbp-usd.md) | +0.6% | +0.6% |
| DXY | 2026-09-30 | [FOREX-US dollar flat against peers after softer-than-expected inflation data \| International](https://feedsoft.ai/events/17640-forex-us-dollar-flat-against-peers-after-softer-than-expected-inflation-data.md) | -0.1% | +0.7% |
| DXY | 2018-09-25 | [Dollar slips ahead of widely expected Fed rate hike](https://feedsoft.ai/events/63243-dollar-slips-ahead-of-widely-expected-fed-rate-hike.md) | +0.3% | +1.4% |
| DXY | 2019-01-28 | [Brexit Pound Analysis: British Pound Has Rallied 5% Vs Euro, Dollar But How Much Has GBP Discounted A No Deal Brexit? \| Exchange Rates UK](https://feedsoft.ai/events/61332-brexit-pound-analysis-british-pound-has-rallied-5-vs-euro-dollar-but-how-much.md) | -0.2% | +0.0% |
| DXY | 2016-11-03 | [Trump worries hit dollar; pound boosted by Brexit court ruling](https://feedsoft.ai/events/74075-trump-worries-hit-dollar-pound-boosted-by-brexit-court-ruling.md) | +0.7% | +3.0% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/british-pound-supported-by-boe-hike-expectations-and-softer-dollar-mufg-202611051107

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.