Connect with us

Economics

Pound Rallies on Brexit Optimism, Later Falls on FOMC Decision

The British pound today rallied higher against the US dollar amid optimism that the UK would not crash out of the EU after Boris Johnson toned down his rhetoric. The GBP/USD currency pair’s rally was also driven by the dollar’s selloff coupled with the upbeat UK inflation data released earlier today, which boosted the pound. The GBP/USD currency pair today rallied from a low of 1.2875 in the Asian market […]

Share this article:

Published

on

This article was originally published by Forex News

The British pound today rallied higher against the US dollar amid optimism that the UK would not crash out of the EU after Boris Johnson toned down his rhetoric. The GBP/USD currency pair’s rally was also driven by the dollar’s selloff coupled with the upbeat UK inflation data released earlier today, which boosted the pound.

The GBP/USD currency pair today rallied from a low of 1.2875 in the Asian market to a high of 1.3007 during the American session and was trading near these highs at the time of writing.

The currency pair’s initial was driven by favourable market sentiment after the British PM reassured leaders of his commitment to getting a post-Brexit trade deal with the EU. The release of the upbeat British consumer price index report for August also drove the pair higher. According to the UK’s Office for National Statistics, the country’s headline inflation rose 0.2% versus the expected 0% print, while the core print also beat analysts expectations. The disappointing retail price index, combined with the producer price index, could not derail the pair’s ascent.

The pair later fell in the afternoon as Boris Johnson said that he does not believe the EU is negotiating with good faith. The pair fell as MPs quizzed the Prime Minister about the rising coronavirus cases in the UK. The US FOMC rate decision also contributed to the pair’s decline.

The currency pair’s future performance is likely to be affected by tomorrow’s Bank of England monetary policy decision.

The GBP/USD currency pair was trading at 1.2947 as at 19:32 GMT, having risen from a low of 1.2875. The GBP/JPY currency pair was trading at 135.96, having fallen from a high of 136.47.


© SimonMugo for Forex News, 2020. |
Permalink |
No comment |
Add to
del.icio.us

Post tags: , , , , , , , , , ,

Feed enhanced by Better Feed from Ozh

us dollar
monetary policy

Share this article:

Economics

Is Japan’s Population Really Going To Fall By A Third

Is Japan’s Population Really Going To Fall By A Third

By Russell Clark, author of the Capital Flows and Asset Markets substack,

Japanese…

Share this article:

Continue Reading
Economics

Culture Of Bailouts Is Destabilizing The Global Financial System

Culture Of Bailouts Is Destabilizing The Global Financial System

Authored by Ruchir Sharma, op-ed via The Financial Times,

A maximalist culture…

Share this article:

Continue Reading
Economics

Banks & Big-Tech Breakdown, Credit Calm, Bitcoin & Bullion Bounce

Banks & Big-Tech Breakdown, Credit Calm, Bitcoin & Bullion Bounce

Yesterday’s early exuberance gave way to reality today as macro…

Share this article:

Continue Reading

Trending