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GBP/USD stalls at 1.3800 on US dollar strength

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  • Sterling advances despite US dollar strength across the board.
  • Brexit: David Frost said, “The problem with the EU proposals on Northern Ireland is that they don’t go far enough.”
  • BoE: I’m in no rush to raise rates – Tenreyro.

GBP/USD stalled at 1.3800 for the second day in a row

GBP/USD stalled at 1.3800 for the second day in a row, unable to make a sustained break above the figure, but in recent hours, bounced off the daily low at 1.3739, trading at 1.3768 during the US session at the time of writing.

Despite the strength of the US dollar across the board, the risk-sensitive British pound is advancing. As a result of major US tech heavy companies such as Facebook, Alphabet, Apple, and Facebook reporting their Q3 earnings on Tuesday, inflation concerns look a little easier.

Meanwhile, the U.S. dollar index that measures the greenback’s performance against a basket of peers gains 0.16% to 93.79. While the yield on the 10-year Treasury note drops nearly three basis points to 1.627%.

Brexit concerns appear to be keeping GBP/USD price action within the range of 1.3700-1.3800. Reuters reports that David Frost, the UK’s chief Brexit negotiator, said on Monday that the EU’s proposals would not deliver the “freeing up of trade” they want. According to him, the EU proposals on Northern Ireland don’t go far enough.

GBP/USD

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BoE: I’m in no rush to raise rates – Tenreyro

In the morning, BoE external fellow Silvana Tenreyro said she needed more time to judge how the leave scheme would affect the labor market. Additionally indicating she wasn’t in a hurry to raise rates. She also stated that the inflationary pressures from higher energy prices were likely to fade quicklTenreyro. Who is still one of the BoE’s moderate members, took a different tone than Governor Andrew Baily. Who additionally said the BoE “will have to act” to curb inflationary pressures.ures.

According to Brown Brothers Harriman in a note to clients, expectations for BoE tightening remain high. “Four more increases are projected over the course of 2022, along with fourth quarter liftoff,” it said in the note.

In the U.S., the lock-up period for Fed members would leave investors with a good number of policymakers favoring an announcement of tapering at the November meeting.

As part of the U.S. economic calendar, the Dallas Fed manufacturing business index rose to 14.6. Higher than the 6.8 forecast by economists. Additionally, the employment index rose to 28.3 from 26.3, and the new orders index rose to 14.9 from 9.5 in the release.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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