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Pound Falls Against the Dollar on Dovish BoE, Upbeat US Non-Farm Payrolls

The Sterling pound fell against the dollar, extending a 3-day decline driven by the greenback’s rally during the same period and the dovish investor sentiment. The GBP/USD currency pair fell further after the release of upbeat US jobs data…

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The Sterling pound fell against the dollar, extending a 3-day decline driven by the greenback’s rally during the same period and the dovish investor sentiment. The GBP/USD currency pair fell further after the release of upbeat US jobs data that boosted the greenback at the pound’s expense as investors wait for US stimulus.

The GBP/USD currency pair fell from a high of 1.3906 in the Asian market to a low of 1.3778 in the American session but was off these lows at the time of writing.

The currency pair has fallen for the past three days extending a much larger downtrend that started on February 25th after hitting new highs last seen in April 2018. The pound’s decline coincided with the Bank of England‘s dovish stance after it unveiled a plan that includes the possibility of negative rates later this year. Dovish comments by the BoE’s Jonathan Haskel regarding the UK’s economic recovery also contributed to the pound’s weakness. Haskel also downplayed the risks of high inflation levels in Britain, indicating that the BoE does not plan to reduce its stimulus programs.

As tracked by the US Dollar Index, the greenback’s rally, which hit a high of 92.19, drove the cable lower. The release of the upbeat US non-farm payrolls report for February by the Bureau of Labor Statistics drove the pair to its daily lows.

The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events and US dollar dynamics.

The GBP/USD currency pair was trading at 1.3834 at 19:08 GMT, having fallen from a high of 1.3906. The GBP/JPY currency pair was trading at 149.81 after dropping from a high of 150.37.


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