The post British Pound extends rally to 218.00 vs JPY as rate gap, politics aid appeared on BitcoinEthereumNews.com.
The GBP/JPY cross builds on the previous day’s strong positive momentum and gains traction for the second successive day on Thursday. This also marks the fourth day of a move higher in the previous five and lifts spot prices to the 218.00 neighborhood, or the highest since January 2008 during the early part of the European session. With frontrunner Andy Burnham expected to become the next Prime Minister by July 20, fading UK political uncertainty has been bolstering the British Pound’s (GBP) relative outperformance. Furthermore, a broadly weaker US Dollar (USD) benefits the GBP, which, in turn, is seen as a key factor acting as a tailwind for the GBP/JPY cross. The momentum seems rather unaffected by speculations that Japanese authorities will step in to prop up the domestic currency. In fact, Japan’s Finance Minister Satsuki Katayama said last week that officials are re
The post British Pound: Flexible BoE stance supports against US Dollar – BNY appeared on BitcoinEthereumNews.com.
BNY Mellon’s Geoff Yu notes that reduced Bank of England (BoE) tightening expectations are not undermining the British Pound (GBP). He argues that BoE flexibility around its mandate and reluctance to overreact to supply shocks is not hurting GBP, with consistent domestic Gilt demand and positive real rates offset by international concerns about United Kingdom (UK) growth and politics. Rate repricing leaves Pound resilient “In the U.K. and GBP’s case, whether rates are the dominant driver is questionable, given the volume of political noise still weighing on the economy. Bank of England (BOE) Governor Andrew Bailey has credited market rate moves with “doing the tightening for the BOE” and appears clearly skeptical of using further hikes to address a supply shock.” “Compared with the ECB, we believe the BOE’s flexibility around its price stability mandate is a deliberate choi
The post EUR/GBP Price Forecast: Languishes below 0.8550 with bullish attempts subdued appeared on BitcoinEthereumNews.com.
The Euro (EUR) keeps treading water right above one-year lows against the British Pound (GBP) on Thursday. The EUR/GBP is trading flat in the area of 0.8530 at the time of writing, weighed by rising tensions between the US and Iran and the rebound in oil prices. In the Eurozone, German Trade Balance data beat expectations with a EUR 19.1 billion surplus in May, from the 14.5 billion surplus seen in April, as exports grew against expectations. The data, however, has failed to provide any significant support to the Euro. Meanwhile, the US has launched a new round of attacks in Iran, which targeted US bases in Gulf countries in retaliation. US President Donald Trump said on Wednesday that the ceasefire was over, and Crude prices have bounced up nearly10% with Brent Oil hitting the $80 level on Wednesday, after bottoming near $70.00 last week. Technical Analysis: EUR/
The post Pound Sterling Price News and Forecast: GBP/USD gains ground to around 1.3395 appeared on BitcoinEthereumNews.com.
British Pound strengthens to near 1.3400 as UK political risk fades The GBP/USD pair gathers strength near 1.3395 during the Asian trading hours on Thursday, bolstered by fading domestic political uncertainty. However, hawkish minutes from the Federal Reserve (Fed) and renewed tensions between the US and Iran might support the US Dollar (USD) and cap the upside for the major pair. Following the resignation of Keir Starmer in late June, UK political risk has eased significantly, lifting the Cable. The formal race to replace outgoing Prime Minister Keir Starmer begins on July 9. Frontrunner Andy Burnham is widely expected to become Prime Minister by July 20. Read more… British Pound Sterling wins the day and stays stuck in the same trap GBP/USD trades just below 1.3400 on Wednesday, up around a quarter of a percent and once again leaning on the 200-day Exponential M
The post AUD/JPY Price Forecast: Weakens to near 112.50, but uptrend remains constructive appeared on BitcoinEthereumNews.com.
The AUD/JPY cross trades in negative territory around 112.62 during the early European trading hours on Thursday. The Japanese Yen (JPY) edges higher against the Australian Dollar (AUD) amid escalating tensions in the Middle East after US President Donald Trump said an interim agreement to end the war with Iran was “over.” Traders are also on high alert for possible intervention from Japanese officials. “The yen’s current weakness is excessive and fails to reflect the strong fundamentals of the Japanese economy, a misalignment that could prompt major central banks to launch coordinated intervention,” said Michael Nizard, head of multi-asset and overlay at Edmond de Rothschild Asset Management. Technical Analysis: In the daily chart, AUD/JPY holds above the 100-day moving average (MA) and the Bollinger Bands’ 20-day simple moving average (SMA), which together su
The post British Pound strengthens to near 1.3400 as UK political risk fades appeared on BitcoinEthereumNews.com.
The GBP/USD pair gathers strength near 1.3395 during the Asian trading hours on Thursday, bolstered by fading domestic political uncertainty. However, hawkish minutes from the Federal Reserve (Fed) and renewed tensions between the US and Iran might support the US Dollar (USD) and cap the upside for the major pair. Following the resignation of Keir Starmer in late June, UK political risk has eased significantly, lifting the Cable. The formal race to replace outgoing Prime Minister Keir Starmer begins on July 9. Frontrunner Andy Burnham is widely expected to become Prime Minister by July 20. The release of minutes from the Fed’s June meeting, which was Chairman Kevin Warsh’s first, reflected a divided central bank not sure how to proceed on rates without more information on inflation. The minutes said that “many participants indicated that the appropriate level of the federal
The post British Pound feeds on bad news as the Euro slides to a one-year low appeared on BitcoinEthereumNews.com.
The Euro’s slide against the Pound has now consumed seven of the last eight trading sessions, and the reflex explanation of a soft single currency gets the attribution backwards. Sterling has done most of the work here: the Pound just closed out its best week in three months, printed a one-year high against the Euro, and managed both midway through a leadership transition with no confirmed Prime Minister and no named finance minister. The cross is falling because the Pound is being repriced upward, not because the Euro is falling apart. A Bank of England hike went from coin flip to certainty in three sessions Interest rate expectations moved decisively in the Pound’s favour inside a single week. Markets priced roughly a 70% chance of a Bank of England (BoE) hike by year-end on Monday, nudged that to 76% on Tuesday, then moved to full pricing after the White House declared
The post British Pound holds firm as Hormuz shock lifts Oil, Dollar appeared on BitcoinEthereumNews.com.
The Pound Sterling (GBP) posts modest gains during the North American session on Wednesday amid growing tensions in the Middle East, as US President Donald Trump’s said the deal with Iran was “over” after both countries exchanged attacks over the last couple of days. At the time of writing, the GBP/USD pair trades at 1.3371, up 0.09%. GBP/USD steadies as geopolitical risk offsets Dollar strength During the last couple of days, Tehran and Washington exchanged blows after Iran hit two vessels sailing through the Strait of Hormuz, triggering a response from the US. The US CENTCOM reported that it attacked 80 targets during the last two days. In addition to the attacks, the US reimposed sanctions on Iran’s Oil, while Trump threatened to resume the blockade in Hormuz. Energy prices jumped, with the US crude Oil benchmark, West Texas Intermediate (WTI), rising nearly 5% to $75.60. The US
The post British Pound: Recovery eyes 1.36 against US Dollar – Scotiabank appeared on BitcoinEthereumNews.com.
Scotiabank strategists Shaun Osborne and Eric Theoret note the British Pound (GBP) is slightly softer but supported by a sharp repricing of Bank of England (BoE) tightening. Improving United Kingdom (UK)–United States (US) spreads and positive sentiment around the UK leadership transition underpin GBP, while technicians remain bullish, targeting an extension of gains toward 1.36 within a 1.3300–1.3400 near-term range. BoE repricing underpins Pound outlook “The pound is soft, down a fractional 0.1% vs. the USD and a mid-performer among the G10 currencies in mixed overall trade. The latest resurgence in geopolitical tensions has amplified the renewed tightening in BoE expectations that we had observed over the past week or so.” “The recovery in UK-US spreads is offering fundamental support to the GBP, and compounding the sentiment-related strength observed in response to the mar
