Sterling stabilizes after 5-day drop

The British pound has stabilized after falling for five-days against the US dollar.

Brexit fears had weighed on sterling in recent weeks but a pro-EU view expressed by US President Barack Obama on a visit last month to the UK helped support the pound.

Meanwhile, US Secretary of State John Kerry said in London that Britain’s membership of the EU has magnified its role on the global stage, echoing that saw bookmakers lengthen the odds on a Brexit, pushing up sterling.

The pound hit a day’s high of $1.4477 on Tuesday after Kerry’s comments, though that move coincided with a broad move down for the dollar.

The main risk event for sterling will be the Bank of England policy meeting. The Bank’s monetary policy committee starts a two-day meeting on Wednesday, and will on Thursday release updated growth and inflation forecasts in a quarterly report.

There are risks to the downside for sterling if the central bank will cut its growth forecasts given Brexit uncertainty.

The pound traded around $1.4450 early on Wednesday. Against the euro, sterling gained 0.3 percent to 78.77 pence.

The post Sterling stabilizes after 5-day drop appeared first on FXTM Blog.

Source:: Sterling stabilizes after 5-day drop

About the Author
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC. Our mission is to maximize the value our clients derive from their most precious commodity, "Time"! By offering advanced and innovative services, optimal customer care and perpetual devotion to our clients, we will ensure that their individual needs are always met as markets continue to evolve over time. Visit ForexTime to learn more [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

Related Posts

Leave a Reply