Pound Recovers after BoE Announcement

Sterling was able to move higher against the greenback on growing expectations that President Donald Trump will lose his re-election bid.

GBP/USDThe pound sterling reversed course after slipping lower against the common currency Euro after the Bank of England announcement of upcoming monetary policy changes. The Governor of the BoE, Andrew Bailey, said that they were prepared to begin pumping more money into the local economy should the inflation outlook weaken further. The increase in liquidity would be up another £150 billion, bringing the total to £895 billion. Sterling was able to move higher against the greenback on growing expectations that President Donald Trump will lose his re-election bid; currently, Democratic Nominee Joe Biden holds 264 electoral votes and needs just six more to win the race. Mail in votes are still being counted in some of the key states, notably Georgia, Pennsylvania and Nevada.

As of 11:22 am in London, the EUR/GBP was trading lower at 0.9035 pence, down 0.2021% and moving off the session peak of 0.90725 pence. The GBP/USD was higher at $1.3071, a gain of 0.9679%; the pair has ranged from a low of $1.29297 to a peak of $1.30757 in today's session.

US Labor Data in Focus

Looking to the US for data releases, labor reports will be due out later today. Initial and continuing jobless claim data is expected to show a slight decline to 732,000 and 7.2 million, respectively. Analysts are forecasting that preliminary non-farm productivity figures for the third quarter will show a decline to 5.6% from 10.1%. Tomorrow is the main event with the release of the non-farms payroll report; from the latest poll, analysts are predicting that the NFP will show a decline to 600,000 new jobs for the month of October, down from 661,000 in September. The unemployment rate is also expected to be lower, slipping from 7.9% to 7.7%.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.