The pound rose versus the dollar, extending a gain from the end of last week, as a gauge of retail sales exceeded analysts’ forecasts and trading patterns suggested the U.K. currency was due to halt its downward trend.
Sterling is poised to rally versus the U.S. currency after forming a chart pattern called an inverted head and shoulders, according to Brown Brothers Harriman & Co. The pound has declined more than 6 percent since reaching a five-year high in July. U.K. government bonds rose before the Debt Management Office sells gilts due in 2068 via banks this week. Bank of England policy maker Nemat Shafik is scheduled to speak in London today.
“The pound is going to lift over the course of the week given opportunities for fairly normal trading conditions,” said Harry Adams, the head of trading at Argentex LLP, a currency advisory company in London. The decline since July “is a big move. It could be a question of it being too far, too fast, so there will be a little bit of a relief rally, up to mid-$1.63.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
AUD/USD stays defensive below 0.6500 ahead of Fed
AUD/USD is on the back foot below 0.6500, consolidating the previous decline early Wednesday. China's holiday-led thin conditions and pre-Fed policy decision caution trading leave Aussie traders on the edge.
USD/JPY holds higher ground near 158.00, Fed in focus
USD/JPY holds the rebound near 158.00 in Asian trading on Wednesday. The US Dollar remains on the bid amid a risk-off market environment, underpinning the major. The interest rate differential between Japan and the US is likely to maintain a bullish pressure on the pair ahead of the Fed decision.
Gold snaps two-day losing streak above $2,280 ahead of Fed rate decision
Gold price posts modest gains around $2,288 on Wednesday during the Asian session. The precious metal edges higher as markets turn to a cautious mood ahead of the Federal Reserve's monetary policy meeting on Wednesday.
Bitcoin price dips into $60K range as spot traders flock to Coinbase Lightning Network
Bitcoin price slid lower on Tuesday during the opening hours of the New York session, dipping its toes into a crucial chart area. It comes as markets continue to digest the performance of Hong exchange-traded funds after their first day of issuance.
Federal Reserve meeting preview: The stock market expects the worst
US stocks are a sea of red on Tuesday as a mixture of fundamental data and jitters ahead of the Fed meeting knock risk sentiment. The economic backdrop to this meeting is not ideal for stock market bulls.