Pound Recovers on May Comments

By: DailyForex

In Monday trading, the Pound Sterling recovered from a fall which saw its largest single week’s decline in about a year. That recovery came after comments by Theresa May, the British Prime Minister, who promised she would be able to ward off any challengers and that she might be considering reshuffling her cabinet in order to ensure authority. To some market players, that signaled a likely departure for Boris Johnson, the current foreign minister and a key challenger to May’s authority. Analysts feel that Johnson’s departure could increase the likelihood of a less rocky Brexit in the longer term and, in the short term, be Pound positive.

As reported at 11:42 am (BST) in London, the GBP/USD was trading at $1.31, a gain of 0.62%; the pair is not too far off the session peak of $1.3157, while the low stands at $1.3052. The EUR/GBP is down 0.49% and trading at 0.8933 Pence; the pair has ranged from 0.89220 Pence to 0.89832 Pence in the session.

A Glimpse Ahead at Market Movers

Looking ahead to the economic calendar, the week’s first potential market mover will be Wednesday’s release of the Federal Reserve meeting minutes from September. Markets will scrutinize these for language to help gauge the timing of the next rate hike. After the FOMC minutes, attention will focus on Mario Draghi, head of the European Central Bank, who will speak on Thursday in Washington, DC at the annual IMF/World Bank meeting. The EUR/USD pair is currently trading at $1.1742, a gain of 0.15%. 

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.