BoE Positivity Boosts Pound
Sterling is currently hovering just above the 1.31 and seems to be trading in a short term range with the upper band being around the 1.3185 which also marks a 5 month high.
On Thursday, the BOE kept monetary policy unchanged with a 0.10% interest rate and held the Quantitative Easing program unchanged £745 billion. However, the central bank upwardly revised its GDP figures while cutting its unemployment and Inflation targets for the short-term, which in turn helped sentiment to remain strong.
The US dollar index gained 0.32% yesterday after dropping to the lowest since May 2018 the previous day.
Democrats and Republicans couldn’t gel even for the benefit of the nation to bring stimulus to where it needs to be. Though, US President Donald Trump has already threatened to use executive powers to make way for these benefits.
The policymakers not only failed to offer details of the much-awaited coronavirus (COVID-19) phase 4 aid package but also disappointed unemployed people over the jobless claims. As a result, the Republican leader of the Senate, Mitch McConnell, pushed policymakers towards attending negotiations for the aid bill during the generally observed August vacation.
The Euro is feeling the pull on Friday as the much oversold Dollar is drawing
As for coronavirus, all is being shrugged off when it comes to the ramifications of the global economy pertaining to the US spread, but markets are encouraged instead by the tightening of the spread for periphery EuropeanI’ll countries like Spain and Italy.
Looking ahead, the pair may continue to take cues from the broader market sentiment. German Industrial Production, data has already been released. Coming in above consensus of 8.9% from 7.4% previously and 8.3% expected.
Data to watch
12:30 – USD – Non-Farm Employment Change
12:30 – USD – Unemployment Rate
12:30 – USD – Average Hourly Earnings