Speakers from Touchstone Exploration, Shanta Gold, Savannah Resources and Kavango Resources feature in our Natural Resources webinar on May 25th. Please register here.

Less Ads, More Data, More Tools Register for FREE

UPDATE 2-Sterling above $1.33 for first time in 2020 as dollar falls

Fri, 28th Aug 2020 14:02

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Updates prices and adds Bailey comments)

By Olga Cotaga

LONDON, Aug 28 (Reuters) - Sterling rose above $1.33 for the
first time in 2020 and touched an eight-month high as the dollar
fell across the board in the aftermath of a speech by Federal
Reserve Chairman Jerome Powell.

The pound was last trading up more than 1% at $1.3341
, its highest since mid-December, while it rose 0.4%
against the euro to 89.23 pence, a 1-1/2-month high.

In his address to the virtual Jackson Hole Symposium, Powell
fuelled expectations that U.S. interest rates could remain low
for a long time to come by signalling the central bank would aim
for inflation to average 2%, rather than exactly hit that level.

Speaking at the same event on Friday, Bank of England
Governor Andrew Bailey said the British central bank had more
ammunition to support the economy after its coronavirus lockdown
shock, and there was evidence that big, aggressive stimulus
pushes were effective.

Traders are shying away from taking strong views on the
pound, however, with most investors remaining on the sidelines
in thin August trading, but analysts say things may change next
week when many people return from summer holidays.

"It's this intermediate period when everyone is waiting to
see how things develop," said Esther Maria Reichelt, a forex
analyst at Commerzbank.

Renewed weakness in the pound is a possibility, analysts
say, as a mix of Brexit uncertainty, coronavirus fears and
dismal economic data could drive it lower.

British business confidence has ticked up, but remains far
below usual levels as the economy struggles to cope with social
distancing and employers prepare to cut jobs, a survey showed on
Friday.

"At the moment we're concentrating a bit more on the Fed and
the dollar, but it will come that there's interest in sterling
again," said Andreas Koenig, head of global FX at Amundi, adding
the pound's fate would be determined by whether Britain managed
to agree a future trade deal with the EU.

Prime Minister Boris Johnson will launch a public campaign
next week to get Britain back to the workplace as ministers warn
working from home could make people more vulnerable to losing
their jobs, The Telegraph newspaper reported.

Britain is trying to find a way to revive its serviced-based
economy even while COVID-19 remains a threat.

The government said on Friday it would back three nationwide
COVID-19 studies with 8.4 million pounds ($11 million) for
research into understanding human immune responses to the
pandemic.
(Reporting by Olga Cotaga, Editing by Mark Heinrich and Mark
Potter)

More News

UK PM calls summit as Sturgeon says 2nd referendum is will of Scotland

UK PM calls summit as Sturgeon says 2nd referendum is will of Scotland

Today 09:49

Soccer-Man City made to wait for title by Chelsea, Liverpool boost top-four hopes

By Martyn HermanLONDON, May 8 (Reuters) - Hundreds of Manchester City fans gathered outside the Etihand Stadium for a Premier League title celebration that proved premature as Chelsea ruined the script with a last-minute 2-1 victory on Saturday.City ...

8 May 21 23:49

UPDATE 1-Soccer-City made to wait for title after losing at home to Chelsea

(Adds details)By Simon EvansMANCHESTER, England, May 8 (Reuters) - Manchester City will have to wait a little longer to be crowned Premier League champions after they were beaten 2-1 at home by Chelsea on Saturday.City, who made nine changes for the ...

8 May 21 19:57

UPDATE 2-Soccer-City made to wait for title after losing at home to Chelsea

(Adds quotes)By Simon EvansMANCHESTER, England, May 8 (Reuters) - Manchester City will have to wait a little longer to be crowned Premier League champions after they were beaten 2-1 at home by Chelsea on Saturday.City, who made nine changes for the g...

8 May 21 19:57

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.