Pound Rallies on Trump’s Fed Criticism Ahead of Brexit Talks

The  British pound today extended yesterday’s rally against the  US dollar following President Trump’s criticism of  the  Fed’s interest rate hikes. The  GBP/USD currency pair shrugged off concerns regarding the  possibility of  a  no-deal Brexit even as  the  EU’s chief negotiator and  the  UK’s Brexit minister are set to  meet later today.
The  GBP/USD currency pair today rallied from an  initial low of  1.2798 to  a  high of  1.2846 and  was trading sideways at  the  time of  writing.
The  currency pair extended yesterday’s rally, which was triggered by  President Donald Trump‘s criticism of  the  Federal Reserve‘s recent and  future rate hikes. In  his comments, the  President stated that he expected Fed Chair Jerome Powell to  be a  ‘cheap money guy’ and  expressed his frustrations with the  Fed’s policies. The  release of  the  UK public sector net borrowing for  July by  the  Office for  National Statistics had a  muted impact on  the  currency pair. The  public sector borrowing came in  at   £39.4 billion, which is the  lowest level in  11 years.
The  release of  the  UK’s CBI trends total orders later in  the  session had a  slightly positive impact on  the  pair despite the  print coming in  at  7 versus the  expected 8. However, the  CBI trends selling prices came in  at  15, which was higher than the  expected 14.
The  currency pair’s short-term performance is likely to  be affected by  the  outcome of  the  meeting between the  EU’s Michel Barnier and  the  UK’s Dominic Raab.
The  GBP/USD currency pair was trading at  1.2825 as  at  12:42 GMT having dropped from a  high of  1.2846. The  GBP/JPY currency pair was trading at  141.56 having risen from a  low of  140.65.

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