The Sterling pound today fell against the US dollar following dovish speeches from Bank of England policymakers regarding the British economy and monetary policy. The GBP/USD currency pair kept falling despite the release of weak US jobs data as markets interpreted the BoE’s willingness to take extra easing measures negatively.
The GBP/USD currency pair today fell from an opening high of 1.3401 during the Australian market before falling to a low of 1.3283 in the American session but was off these lows at the time of writing.
The currency pair’s initial decline was fueled by investor sentiment, and the release of upbeat UK Nationwide housing prices index report for August could not stop the pair’s fall. British housing prices rose 2% in August, beating analysts estimates of a 0.5% expansion. The cable headed lower after the BoE Deputy Governor Dave Ramsden said that they could ramp up Qe if any market dysfunctions occurred requiring such actions. BoE Governor Andrew Bailey added that the bank should have a robust framework to help it go big and go fast if needed.
However, Gertjan Vlieghe was more hawkish as he talked about unwinding the bank’s balance sheet without affecting the economy. The pair kept falling despite the US ADP employment change report coming in at 428,000 jobs versus the expected 950,000 jobs. The upbeat US factory orders for July also drove the pair lower.
The currency pair’s future performance is likely to be affected by tomorrow’s UK and US PMI reports.
The GBP/USD currency pair was trading at 1.3334 as at 19:23 GMT, having fallen from a high of 1.3401. The GBP/JPY currency pair was trading at 141.68, having risen from a low of 141.01.
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