GBP/USD Ekes out Gains
The British Pound is regaining previous losses against the US Dollar and rebounding off the recently struck 11-day trough. Analysts say that that is largely due to the greenback’s across the board slide as opposed to any significant appreciation of the Pound. In fact, the Pound had suffered a hard loss this past Friday on the heels of an unexpectedly upbeat labor report from the US. That has resulted in speculation that the Federal Reserve might now reconsider a rate hike before December’s end. What will help sentiment is this week’s release of US inflation figures.
As reported at 11:33 am (BST) in London, the GBP/USD was trading a $1.3051, a gain of 0.12% and moving close to the session peak; the daily low is currently at $1.3053. The EUR/GBP is also higher at 0.9045 Pence, a gain of 0.20%; the pair earlier struck a low of 0.90198 while the peak is at 0.90525 Pence.
Pound Outlook Subdued
Analysts say that the Bank of England’s decision to maintain the status quo in regards to its benchmark lending rate is part of the reason that investors had sold off the Pound. The long-held concern that new Brexit developments would swiftly impact the Pound have not occurred, with some suggesting that investors have already priced in any future negativity. FX strategists say that the Pound is likely to remain subdued, however, until there is some change in Bank of England sentiment (to more hawkish) or the outlook for inflation is altered.