Sterling Rises Ahead of BOE on US Trade Deal News
British pound climbed against most Group-of-10 peers amid expectations the US and United Kingdom are on the cusp of announcing a trade deal. Traders now await the Bank of England’s policy decision.
GBP/USD rose as much as 0.5% to 1.3356. President Donald Trump is expected to announce the UK trade deal at a news conference Thursday, according to people familiar with the matter. Details of the agreement weren’t immediately clear, the people said
Bank of England is expected to ease its policy rate to 4.25% from 4.5%, according to all economists in a Bloomberg survey; it will also update growth and inflations forecasts which are expected to reflect impacts of the US trade war
“If we have the expected cut from the MPC, but guidance is strongly linked to trade concerns, this could give the greenlight for a move higher for the pound, given that we are expecting a ‘good’ trade deal for the UK,” said Nick Twidale, chief market analyst at AT Global Markets in Sydney.
Bloomberg Dollar Spot Index little changed, while the yield on 2-year Treasuries rose 3bps to 3.81%
S&P 500 Index futures up 0.8%
AUD/USD rose 0.2% to 0.6437
NZD/USD gained 0.3% to 0.5956
USD/JPY edged 0.1% higher to 143.95
EUR/USD little changed at 1.1303
USD/CNH added 0.1% to 7.2359
Source : Bloomberg
