The Pound Sterling moved higher against the US Dollar as investors sit on the sidelines ahead of testimony from Jerome Powell, the newly appointed chief of the US Federal Reserve Bank. Most market players are expecting that the Bank of England will push through a rate increase in May however the lack of clarity in the Dollar’s direction coupled with wariness over the Brexit talks is weighing on the Pound’s momentum. One currency strategist in London confirmed that the improved outlook for the Pound recently is clouded to some extent by wariness of what might happen on the other side of the Atlantic.
As reported at 11:04 am (GMT) in London, the GBP/USD was trading at $1.3966, a gain of 0.01% and well off the session high of $1.3996; the low stands at $1.3945. The EUR/GBP is trading higher at 0.8823 Pence, a slight gain of 0.0006%; the pair has ranged from a session trough of 0.88160 Pence and a peak of 0.88400 Pence.
Corbyn and May at Odds Again
In the UK, the latest Brexit related news has markets wary; Jeremy Corbyn, the opposition leader, had said that he wanted to see a new customs union negotiated with the European Union. Theresa May, the UK Prime Minister, however, ruled out that thinking and said that doing so would prevent new deals with China and India, for example, economies which were growing very quickly.