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GBP/USD recovers lost ground

Arron Morris Currency Broker - GBP/USD recovers lost ground.  Written by
Arron Morris
Senior Currency Broker
T: 01442 892 065

A lot can change in twenty-four hours, and that is exactly what we have seen for the GBP/USD cross.

Yesterday saw the currency pair drop to a fresh two week low of $1.2350, however, fast-forward to this afternoon and you will see the pound has recovered the lost ground, with GBP/USD now trading back above $1.25.

GBP/USD exchange rate graph

GBP/USD exchange rate graph

Why has the pound been climbing?

Sterling’s rise is mainly because of two announcements from yesterday afternoon.

The first one came from Kristen Forbes, a member of the Bank of England’s Monetary Policy Committee. She gave a speech in Leeds yesterday afternoon and suggested that she could be on the verge of voting for an interest rate rise in the near future.

Forbes said the performance of the UK economy since the Brexit result had confirmed her hunch that the country would see out the referendum better than many economists had forecast.

She also pointed at the risks of an inflation overshoot by saying “In my view, if the economy remains solid and the pickup in data continues on its current path, this could soon suggest an increase in the BoE benchmark rate”.

Investors and traders were also quick to take advantage of the increasing pressure on the Conservative Party to give parliament more of an input on the final deal to leave the EU.

The pound rallied after comments made by junior Brexit Minister David Jones, after he mentioned that parliament would have a meaningful vote on any deal.

Are you thinking of buying or selling dollars?

If you have an upcoming requirement to buy or sell dollars in the coming period and want to ensure that you are making the most from your exchange, get in touch for a free, no-obligation currency consultation.

As specialists in currency exchange we have a number of tools at our disposal to help you maximise your transfer or to help protect you against adverse market movements. For more information about how we can help or to find out what rate we can offer, complete the contact form on the right-hand side of the page or call me directly on 0044 (0) 1442 892 060.

Arron Morris
Senior Currency Broker
T: 01442 892 065

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