Pound remains resilient
The pound reached as high as US$1.32 per dollar on 3 August on a brief surge in expectations that the BoE could raise interest rates over the next year.
The Sterling inched down against a broadly stronger dollar yesterday, holding close to the US$1.30 level that has proved an anchor for the past month despite a series of negative headlines from the first weeks of Brexit negotiations.
Banks are divided on the outlook for the pound for the rest of this year, with some forecasting more losses as the economy slows while others argue the worst of the market reaction to Britain's decision to leave the European Union is over.
Signs that Britain's pro-European finance minister Philip Hammond was suspending hostilities with “hard” Brexiteers in the cabinet who want a cleaner break from the EU did little to shift prices.
“At this stage the market does not expect the news flow around Brexit negotiations to sound very positive,” said Sam Lynton-Brown, a strategist with BNP Paribas in London.
Hammond and ardent Brexiteer trade minister Liam Fox set out a joint position in the Sunday Telegraph that a transition period was needed when Britain leaves the EU, but that single market membership would still end and the interim period would not be used to stop Brexit.
NAMPA/REUTERS
Banks are divided on the outlook for the pound for the rest of this year, with some forecasting more losses as the economy slows while others argue the worst of the market reaction to Britain's decision to leave the European Union is over.
Signs that Britain's pro-European finance minister Philip Hammond was suspending hostilities with “hard” Brexiteers in the cabinet who want a cleaner break from the EU did little to shift prices.
“At this stage the market does not expect the news flow around Brexit negotiations to sound very positive,” said Sam Lynton-Brown, a strategist with BNP Paribas in London.
Hammond and ardent Brexiteer trade minister Liam Fox set out a joint position in the Sunday Telegraph that a transition period was needed when Britain leaves the EU, but that single market membership would still end and the interim period would not be used to stop Brexit.
NAMPA/REUTERS
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