As the dollar gains ground, the GBP/USD has fallen 40 pips from its highs. Worse-than-expected US data, as well as Powell’s uncertainty, dampen mood. Following Wednesday’s jump, UK covid numbers are widely awaited. Back to square one – the GBP/USD exchange rate has dipped to approximately 1.3850, practically unchanged on the day. The safe-haven US dollar has gained strength as part of a broader risk-off sentiment brought on by a number of factors. Continue reading…
During London trading hours, the GBP/USD pair reached a high of 1.3898, as comments from Bank of England policymaker Michael Saunders boosted the pound. He stated that they would debate whether to reduce the present asset acquisition program and/or take additional policy action next year in the coming months. He went on to say that if the “bank rate does rise in the next year or so, any increase will most likely be rather small.” Following that, the pair reversed course as the dollar gained momentum on the back of a gloomy market attitude. In Europe, stocks continued to fall, accelerating their declines ahead of the London close. Wall Street took a hit as well, but concluded the day with a mixed bag. Continue reading…
On both sides of the water, the GBP/USD has been pulled between increasing inflation and central bank repudiation. The rise in covid cases in the United Kingdom could put pressure on the pound. The four-hour chart for Thursday shows a mixed picture. The message from central banks on both sides of the Atlantic, which has been negative for cable, has been “don’t rush.” Sterling has additional reason to suffer four days before “Freedom Day,” as covid instances rise. Continue reading…/n
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