The British pound edged higher against the greenback during London trade on Wednesday, striking a fresh 1-week peak. The pound had briefly lost favor on Tuesday after news that Andrew Haldane, the chief economist of the Bank of England, had resigned his post. Currency strategists say that his departure isn't like to have too major an impact on monetary policy, especially given his stance as one of the BoE hawks. The possibility that the central bank will soon raise interest rates does not appear to be a likely outcome anytime soon. Most strategists see the recent dip as just a blip, and that the pound will likely bounce back given the positive sentiment around the government's vaccination efforts. Analysts concur that the aggressive program is likely to help the UK economy recover that much sooner than its neighbors who continue to struggle with their own vaccination programs.
In London trading as of 10:55 am, the GBP/USD was trading at $1.3768, a gain of 0.1426%, off the session peak of $1.38094 while the low was recorded at $1.37452. The EUR/GBP was lower at 0.8681 pence, down 0.09%; the pair has ranged from a trough 0.86683 pence to a peak of 0.86974 pence.
Central Banker Input of Note
A few heavy hitters in the central banking world will be speaking later today and their commentary will likely be scrutinized for hints of future policy changes. In the Eurozone, ECB Governor Christine Lagarde is due to speak with Reuters in a fireside chat and Q&A session. In the US, the current head of the Federal Reserve will be addressing the Economic Club of Washington. Other members of the Fed's policymaking team are also due to speak today. The Fed's Beige Book is also due to be released today, and market players note that the contents often provide a good clue as to the thinking of the Fed members as regards the US economic outlook.