Sterling rises after Bailey’s remarks

The British pound rose slightly against the US dollar on Thursday, following Bank of England Governor Andrew Bailey comments.

Bank of England Governor Andrew Bailey said that the Brexit talks should result in a trade deal between the UK and the EU to prevent a no-deal Brexit scenario.

 

The bank governor also believes that a second wave of Covid infections will not be as destructive to the British economy as the first one.

 

Bailey confirmed that reaching a trade agreement is in the interest of both sides, adding that he's surprised that the EU wants to restrict where their citizens can do business.

 

Bailey stressed "we will certainly keep our markets open to the world," as the post-Brexit transition period near its end this year on January 31.

 

As of 21:26 GMT, GBP/USD rose by 0.1% to 1.2934, after hitting a day high of 1.2971 and a low of 1.2892.


Attached Files:

Posted By laraparker : 09 October, 2020
Related Article

The US dollar held steadily against most of its peers on Wednesday, after the release of positive US economic data.   The first election debate between the current US presidential candidates took place yesterday, and had managed to attract the global market focus.   The debate resulted in harsh criticism exchange between the Republican candidate Donald Trump and his Democratic rival Joe Biden.   Data showed today that the final reading of the US GDP decreased 31.4% in the second quarter, better than forecasts of -31.7%.   Additionally, ADP data showed the US non-farm employment change rose 749,000 jobs during August, beating forecasts of 650,000 jobs, vs. 481,000 in the previous reading.   The dollar index held against a basket of currencies at 93.9 points as of 20:17 GMT, after hitting a high of 94.1 and a low of 93.6.

The New Zealand dollar fell against most of its peers on Monday, weighed down by concerns over a second wave of coronavirus infections.   Banking and financial stocks in most global markets came under pressure amid expectations for some countries to reinstate another public lockdown.   Protests took place in France and the UK due due to government plans to re-impose lockdown restrictions, especially after British Prime Minister Boris Johnson told Parliament that his government was considering more strict lockdown.   The coronavirus death toll is now close to 1 million victims globally, and infections rose to 31 million cases.   Otherwise, New Zealand's credit card spending index fell 11.9% in August vs. a drop by 5% in June.   As of 18:00 GMT, NZD/USD fell 1.5% to 0.6661, after hitting a day high of 0.6778 and a low of 0.6652.

The US dollar fell on Thursday, deepening its losses for the fourth straight day, and hit a 1-week low, as demand slowed due to improved risk appetite, as hopes were renewed for a new fiscal stimulus in the US to counter the coronavirus impact, ahead of key data releases on the US manufacturing sector.   The dollar index fell 0.3% to a 1-week low of 93.53 points, after opening at 93.80, and hit an intraday high of 93.92.   The greenback lost 0.1% yesterday, its third daily loss, after the release of strong economic data in the US.   The dollar index has gained 1.8% during September, posting its first monthly gain in 5, thanks to strong demand for the US currency, and fears about the global economy after a spike in Covid-19 infections in Europe and the US.   President Donald Trump's administration has proposed a $1.5 trillion stimulus package in the House of Representatives, which comes within the ongoing talks between the two parties to find a compromise on the new Covid-19 relief package.   These developments renewed hopes were for a new fiscal stimulus in the coronavirus-battered economy that is currently suffering its worst economic crisis since the 1930s Great Depression.   Investors are anticipating key economic data releases today on the US manufacturing PMI for September, which delivers insight on the the US economic recovery path during the third quarter.   At 12:30 GMT, the US jobless claims reading is expected to reach 0.850 million in the week ending September 26, from 0.870 million in the previous week.   Investors are also waiting for the release of the US personal spending July's reading, with forecast to rise by 0.7% vs. a rise by 1.9% in July, and the personal income index is expected to drop 2% from a rise by 0.4% in July.   At 14:00 GMT, the ISM manufacturing PMI reading for September will be released, with forecasts to reach to 56.0 points in September, unchanged from August's reading.


Post your comment