The British pound extended its drop against the US Dollar, down some 0.36%, trading at 1.3394 during the New York session. In the overnight session, cable traded jerky, between the 1.3420-50 range, even though some Bank of England’s members talking with the press over the weekend. Additionally, the White House released a statement, nominating the Fed’s Chairman Jerome Powell to a second term, that witnessed a slide of 50 pips in the pair, under 1.34.
After a depressing a rate hike at its previous meeting, market participants begin to be more cautious regarding BoE’s Governor Andrew Bailey comments. Over the weekend, Governor Bailey expressed that inflation could be “elevated for longer,” though there is also the chance that it could not be as permanent as feared.
Brexit fears keeps the pound bulls at bay, as debates between the Eurozone and the UK regarding North Ireland and fishing rights slowed down, with investors anxious, moving from risk-sensitive currencies towards safe-haven ones.
In the meantime, the US Dollar Index expanded its gains, up 0.48%, sitting at 96.45, underpinned by Fed’s Jerome Powell nomination. Also, US Treasuries expanded their gains during the day, with the 10-year Treasury yield advancing seven basis points, sitting at 1.60%, as investors view the reappointment as a continuation of the monetary policy path drawn by the Fed in the last couple of meetings.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.