Average economists’ estimates point to a rate hike as early as the first three months next year, compared to earlier expectations for a rate change in the second quarter, reports Atul Prakash for Reuters.
The stronger British currency can also help bolster returns for United Kingdom ETFs that do not hedge against the pound sterling. For instance, the iShares MSCI United Kingdom ETF’s (NYSEArca: EWU) tracks U.K. companies and does not hedge its currency risk, so a rising U.K. market coupled with a stronger pound sterling would translate to greater U.S.-dollar returns. EWU is up 4.2% year-to-date. [U.K. ETF Flirts With Six-Year Highs]
CurrencyShares British Pound Sterling Trust
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Max Chen contributed to this article.