Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Pound Sterling Forecast (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Pound to Dollar Rate Pushed Higher by Risk-on Mood

% of readers think this story is Fact. Add your two cents.


The pound to dollar rate accelerated above the 1.38 resistance level on Friday – settling there for the weekend, before extending its gains this morning. The UK currency was more of a passenger than a driver of the pair’s sudden jump higher, following a week that saw it get off to a good start when large swathes of the UK economy reopened on Monday, before coming under pressure.

Deprived of notable data that could underscore the nation’s economic recovery, the UK currency was blindsided on Tuesday by the sudden announcement that the Bank of England’s chief economist Andy Haldane – one of the more hawkish members of its Monetary Policy Committee – will be stepping down from his role in June. The unexpected news raised concerns amongst investors that the central bank could be more dovish in the future.

Additional pressure was applied on the pound when reports emerged that the Oxford AstraZeneca vaccine had been linked with rare blood clots. The AstraZeneca jab has formed the backbone of the UK’s vaccination drive and investors fear that any restriction of its use could delay the government’s roadmap out of lockdown.

Dollar Comes Under Sustained Pressure

The pound’s problems were outweighed by those facing the dollar last week – sending the . The US currency was initially undermined by comments from Federal Reserve Chair Jerome Powell, who suggested that the economy is at an “inflection point” and that despite positive data showing improvement, further recovery will depend on strong monetary policy support from the central bank.

Despite the US consumer price index printing above expectations, with inflation surging to 2.6% in March, further comments from Mr Powell weighed on the dollar. The Fed Chair outlined that the central bank would like inflation to moderately exceed its 2% target for a period and suggested that interest rates would remain unchanged until 2023.

The dollar firmed on Thursday, but only briefly, after the latest US retail sales and jobless claims prints improved on forecasts. However, this was quickly followed by additional selling pressure caused by a prevailing risk-on mood and falling US Treasury yields, which combined to reduce demand for the dollar.

This was compounded by the Michigan consumer sentiment index, which despite improving from 84.9 to 86.5, fell short of forecasts that sentiment would reach a pandemic high of 89.6 in April.

Looking Ahead

Tomorrow’s employment report from the Office for National Statistics will show the UK claimant count, unemployment rate and average earnings including bonus.

A quiet start to the week in the US economic calendar means Thursday’s initial jobless claims figure and Chicago Fed national activity index are the first releases of note.

Get in touch using the form below to discuss these factors in further detail ahead of your currency exchange.

The post Pound to Dollar Rate Pushed Higher by Risk-on Mood appeared first on Pound Sterling Forecast.



Source: https://www.poundsterlingforecast.com/2021/04/pound-to-dollar-rate-pushed-higher-by-risk-on-mood/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.