Pound Rallies Against Weak US Dollar on Bullish BoE Stance

The  Sterling pound today rallied higher against the  much weaker US dollar as  traders bought the  pound given the  Bank of  England‘s bullish stance on  interest rates. The  GBP/USD currency pair rallied for  the  fourth consecutive session as  the  bearish sentiment towards the  greenback persisted as  US Treasury yields continue to  fall.
The  GBP/USD currency pair today rallied from an  opening low of  1.2949 to  a  high of  1.2996 at  the  time of  writing as  the  bulls were clearly in  control of  the  pair’s price movements.
The  currency pair’s rally was primarily boosted by  the  weak greenback as  tracked by  the  US Dollar Index, which was on  a  downtrend from the  start of  the  session. Investors also flocked to  the  pound after it became evident that the  incoming BoE Governor Andrew Bailey was not keen to  follow in  the  footsteps of  other central bankers by  cutting rates. On  the  other hand, analysts and  investors are expecting a  second rate from the  Federal Reserve chairman Jerome Powell on  18th March, which could further weaken the  dollar.
The  global coronavirus outbreak has scared investors who have purchased safe-haven assets led by  the  US Treasuries, which triggered a  significant drop in  bond yields and  the  dollar. The  lack of  any negative Brexit headlines also boosted the  sterling as  the  EU seems keen to  secure a  deal with the  UK.
The  currency pair’s short-term performance is likely to  be affected by  the  US non-farm payrolls set to  be released at  13:30 GMT.
The  GBP/USD currency pair was trading at  1.2992 as  at  09:58 GMT having rallied from a  low of  1.1948. The  GBP/JPY currency pair was trading at  136.65 having dropped from 137.64.

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