Pound Sterling gains as BoE Mann emphasize to keep interest rates steady
The Pound Sterling (GBP) holds onto Thursday’s recovery against its major peers on Friday, although it looks set to post its fourth consecutive week of losses against the US Dollar. Still, the near-term outlook of the British currency appears to have improved on multiple tailwinds: hawkish remarks from Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann, and a continuous expansion in economic activity signaled by the flash United Kingdom (UK) S&P Global/CIPS Purchasing Managers Index (PMI) data for October.
In a panel discussion at the sidelines of International Monetary Fund (IMF) meetings, Catherine Mann – an outspoken hawk – welcomed the soft inflation figures for September but emphasized the need for more slowdown. Despite a decline in the service inflation below 5%, Mann said that inflation in the services sector still has a long way to go in order to be aligned with the bank’s target of 2%. Read more…
GBP/USD Forecast: Pound Sterling holds above key technical level
Following Wednesday’s sharp decline, GBP/USD reversed its direction and gained more than 0.4% on Thursday. The pair fluctuates in a tight channel below 1.3000 in the European morning on Friday.
After outperforming its rivals in the first half of the week, the US Dollar (USD) lost its strength on Thursday, with the US Dollar Index losing 0.4%. The positive shift seen in risk sentiment made it difficult for the USD to find demand, while retreating US Treasury bond yield further weighed on the currency. Read more…
