The Pound Sterling inched higher against the US Dollar but remains within a tight trading band as FX traders get ready for the next set of uncertainties revolving around the Brexit.
The International Monetary Fund announced on Tuesday that it expects the global economy to grow at a rate of 3.3 percent, lower than the 3.5 percent originally predicted.
The Pound Sterling surged briefly during Tuesday trade in London but gave back most of its gains when it was learned that the news which had prompted the rally was disavowed by the German government.
The dollar started the week trading lower even though the non-farm payroll report released on Friday was construed as mostly positive, showing the creation of 196,000 jobs in March and beating expectations.
Brent crude futures hit $71.34 per barrel on Tuesday, their highest level since November 2018, before retreating slightly on concerns that the global economic slowdown would reduce demand and tighten the commodity market.
U.S. President Donald Trump nominated Herman Cain and Stephen Moore for the Federal Reserve Governing Board, a contentious move amid escalating tension between him and the central bank leadership, as Trump continues to ask for easy monetary policy while the Fed is opting for tightening the monetary policy.
The Pound Sterling was trading above the $1.30 level within narrow ranges as Brexit talks continue among the key players.
This week is likely to see a similar level of activity in the market, with central bank input due from the FOMC and the ECB, and there will also be important U.S. and British economic data releases, as well as more Brexit drama as the deadline for a final decision is approaching again.
The US Dollar struck a 3-week peak against the Japanese Yen during Asian trade on Friday.
The International Monetary Fund recently released a report where they claim that only macroeconomic factors, not tariffs, contribute to changes in the commercial balance between two countries.
U.S. President Donald Trump is set to meet with Chinese Vice Premier Liu He today in an effort to advance the trade negotiations between the two countries.
With hopes that the trade conflict between the United States and China might soon be ended with an agreement between the two nations, the Australian Dollar moved higher during Wednesday trade.
The IMF Chief Christine Lagarde said that many world economies are going to have a slower economic growth this year, but she doesn't see a recession coming in the short term.
Brent crude futures were trading near $70 per barrel on Wednesday, boosted by news that the United States is considering additional sanctions against Iran.
Uncertainty related to the Brexit continues to weigh on the Pound Sterling with the Prime Minister once again placed in a difficult position.