GBP/USD struggles near daily lows, just above 1.2800 mark
The GBP/USD pair refreshed daily lows during the early European session, albeit managed to find some support ahead of the 1.2800 mark and quickly recovered few pips thereafter.
The pair came under some renewed selling pressure on Wednesday and for now, seems to have snapped two consecutive days of the winning streak. The British pound was being weighed down by the BoE Governor Andrew Bailey's dovish comments on Tuesday, which coupled with a modest pickup in the US dollar demand exerted pressure on the GBP/USD pair.
Speaking at an online event organized by Queen's University Belfast, Bailey reiterated that the BoE was not out of ammunition with regards to additional quantitative easing. Bailey further added that policymakers have not ruled out the possibility of using negative interest rates but are realistic about challenges from banking retail deposits. Read More...
GBP/USD to end the year at 1.29 on a modest Brexit deal – CIBC
Sterling has depreciated by around 5% versus the USD in September as the Brexit clock is ticking. Jeremy Stretch from CIBC Capital Markets expects a modest deal to be reached, supporting GBP resilience.
Key quotes: "While we still expect a deal even this late, it will likely be far from comprehensive. While the UK has placed a self-imposed October 15th deadline on discussions, in line with the EU leaders summit, we would not be surprised if talks extend at least until the end of October. As the timeline tightens, we expect sterling to continue to be whipsawed by Brexit headlines. We underline that the reaction to a deal or no-deal scenario is likely to be far from symmetrical." Read More...
GBP/USD: There is room for more falls after ugly US debate
GBP/USD has been on the back foot as the safe-haven dollar gains following the presidential debate. The pound's failure to benefit from upbeat GDP figures also points lower, Yohay Elam, an analyst at FXStreet, reports.
Key quotes: "For markets, the 90-minute televised debate turned from ugly and chaotic to ominous for the fate of the world's strongest country and largest economy. President Trump refused to say if he would accept the election results and also seemed to encourage a white supremacist group. Fears of a contested election and a constitutional crisis sent stocks down and the safe-haven dollar higher, pushing GBP/USD lower." Read More...
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