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GBP/USD Forex Exchange Rate Remain Stable

Published on: 10/9/18 10:14 AM

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Category: Currency, Forex, Latest News, Market, Trade, Trading, US News, World News

 

Early this week the Pound opened the trade at $1.3117 and gained slightly with $3.3178. There was minimal domestic market information and therefore the Sterling Pound remained steady.



  It was boosted by a prolonged positive reaction following Monday Remarks by Brexit Secretary, Dominic Raab. Raab downplayed Prime Minister Theresa May’s assertion that the Brexit talks were at cross-roads. He instead expressed optimism about the Brexit talks. Theresa May made the remarks last week Last week on Monday something that upset the forex markets significantly. Sterling Pound to Dollar Exchange Rate Remain stable in spite of No-deal Brexit fears
The Pound has remained strong against the dollar today with a lot of uncertainty about the ongoing Brexit talks. Domestically, there have been concerns over the strength of the pound to remain stable should the Brexit talks hit a snag. UK delegates supported a potential public vote even as the process nears the end. Other officials expressed their concerns over deliberate attempts by Prime Minister May to stall the entire process. The labor party has been on the forefront championing for another vote. They term the handling of the current negotiation as a waste of time and resources.

US Dollar to Pound Unmoved pending FED rate decision


The US dollar has continued to appreciate against major world currencies. However, it has left a narrow gap against Britain’s Sterling Pound. There’s no doubt that the FED will hit a neutral rate. This means that there will be minimal or no rate hikes. However, this remains unclear for most analysts and investors. Pound Sterling to US Dollar Volatility awaiting FED rate decision The tension that has been building up for weeks will come to an end today when the Federal Reserve unveils its interest rate cap for September. Most people are anticipating an interest increase of 2% or 2.25%. Such forecasting has so far not caused any rallying between the US dollar and the Great Britain Sterling Pound. This is because US Dollar Forex trading brokers have been pricing with expectations that the interest rate capping will get go beyond 2.5%. The US Dollar is likely to rally against the Sterling Pound in case FED policymakers suggest an interest hike in November or December.

The other major event that would cause a significant shit on the side of the Pound Sterling would be a series of speeches from the Bank of England. (BoE).


The chief economist at BoE Andy Haldane and Governor Carney will be giving remarks tomorrow. Their address will likely boost the Pound in case they support an interest rate hike in 2019. Meanwhile, all eyes will be on Fed announcement slated for today evening. It will be a matter of hours before we witness how the currency market will behave.