GBP USD Exchange Rate Edges Higher as Dollar Softens
Having jumped against a weakening dollar in afternoon trading on Wednesday, after data showed falling gas prices halted US inflation, the pound made marginal gains the following day.
Developments in the Conservative Party leadership race and plans for organised blackouts in January were influencing sentiment towards the UK currency on Thursday.
Reports that front-runner Liz Truss would give ministers powers to override financial watchdogs, such as the Bank of England (BoE), if she succeeds Boris Johnson as PM were rebuffed by the central bank’s Governor Andrew Bailey. He believes watering down the independence of regulators would erode post-Brexit reforms.
“Regulatory independence is important, not least because our international standing, and therefore the competitiveness of the UK financial sector which the reforms are aimed at enhancing, depends on it,” Bailey said in a letter to parliament’s Treasury Select Committee.
His comments were reinforced by BoE Chief Economist Huw Pill, who said that central banks can take robust decisions on monetary policy, unlike governments because they’re driven by short-term political goals.
It’s been reported that authorities in Britain are preparing plans for organised blackouts for industry and households this winter when cold weather potentially coincides with gas shortages.
Dollar extends inflation-fuelled slide
The dollar extended its slide on Thursday as investors pared bets on another aggressive interest rate hike at the Federal Reserve’s next policy meeting after a better-than-expected US inflation report the previous day.
The sharper than expected slowdown in prices spurred hopes that the nation may have passed the peak of the worst inflationary pressures in four decades. Following the print, US President Joe Biden said: “We’re seeing some signs that inflation may be beginning to moderate.”
Fed policymakers were quick to dampen expectations the Fed will slow the pace of interest rate hikes, with Neal Kashkari – the president of the Federal Reserve Bank of Minneapolis – saying on Wednesday that the central bank was “far, far away from declaring victory” on inflation.
Wholesale inflation dropped last month for the first time in two years amid a plunge in energy prices, in another sign that price increases are easing.
The producer price index – a gauge of prices received for final demand products – fell 0.5% from June, the first decline since April 2020, a month after the Covid-19 pandemic began ravaging the economy. Economists had forecast a 0.2% increase.
Looking ahead
UK gross domestic product (GDP) data released on Friday is expected to show more signs of a slowing domestic economy. The consensus is for GDP to have dipped 0.3% in the second quarter from a 0.4% growth in the first quarter.
The Michigan consumer sentiment index for August is slated for release in the US on Friday.
To get in touch and receive further insight into the factors that could impact your overseas payments, click the button below and complete the form on the Lumon website.
The post GBP USD Exchange Rate Edges Higher as Dollar Softens appeared first on Pound Sterling Forecast.
Source: https://www.poundsterlingforecast.com/2022/08/gbp-usd-exchange-rate-edges-higher-as-dollar-softens/
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.
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.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
