Sterling gains against USD
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- August 29, 2017
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Sterling rose to two-week highs against the dollar today after escalating tensions in the Korean peninsula added to the greenback’s woes.
The pound has risen more than 1 percent against the dollar since Friday since Federal Reserve Chair Janet Yellen failed to offer any support to the dollar at a central bank conference last week.
With a general risk-averse mood prevailing broadly across financial markets following a missile launch from North Korea, the dollar struggled against its major rivals, falling to more than a 2-1/2 year against most currencies.
Analysts say sterling’s recent moves against the dollar and the euro have largely been a result of broader shifts in the dollar as investors worry about the ability of the U.S. administration to follow through on its economic agenda.
Investors also had their focus trained on the third round of Brexit negotiations which started on Monday, with the European Union’s chief negotiator saying he was concerned at the slow progress of the talks.
The British government has laid out a series of position papers that have outlined compromises over some of the issues likely to block progress in talks this year, but EU officials say Britain needs to settle its divorce bill with the bloc before a trade agreement can be discussed.
This has been going back and forth for some time, and the longer it takes to get negotiations off the ground, the more pressure it will put onto the Sterling value.
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