British pound steadies against US dollar after 2-day gains
January 29, 2015 2:39 am
The British pound pulled up versus the US dollar Wednesday following two-day advances as investors await the decision of the Federal Reserve about interest rate.
Against the euro, sterling escalated nearly half a percent to 74.52 pence, within striking distance of 7-year trough of 74.06 pence reached Monday.
The pound was 0.1% lower versus the greenback at $1.5176, way clear of an 18-month low of $1.4952 hit late last week.
The pound continues to trade on firm footing “after the European Central Bank’s moves last week… we believe the pound will at some stage drop below $1.50 but it still looks relatively attractive compared to the euro,” said Lee Hardman, Currency Strategist at Bank of Tokyo Mitsubishi-UTJ.
The pound’s domestic outlook was still dominated by two factors: the UK general election in May and speculations the Bank of England would raise interest rates far back into next year.
“Our view is that the market has over-reacted on rates and that the bank will probably have to hike at the end of this year or the beginning of next,” said Andrew Haldane, BOE’s Chief Economist.
The material has been provided by InstaForex Company – www.instaforex.com
The British pound pulled up versus the US dollar Wednesday following two-day advances as investors await the decision of the Federal Reserve about interest rate.
Against the euro, sterling escalated nearly half a percent to 74.52 pence, within striking distance of 7-year trough of 74.06 pence reached Monday.
The pound was 0.1% lower versus the greenback at $1.5176, way clear of an 18-month low of $1.4952 hit late last week.
The pound continues to trade on firm footing “after the European Central Bank’s moves last week… we believe the pound will at some stage drop below $1.50 but it still looks relatively attractive compared to the euro,” said Lee Hardman, Currency Strategist at Bank of Tokyo Mitsubishi-UTJ.
The pound’s domestic outlook was still dominated by two factors: the UK general election in May and speculations the Bank of England would raise interest rates far back into next year.
“Our view is that the market has over-reacted on rates and that the bank will probably have to hike at the end of this year or the beginning of next,” said Andrew Haldane, BOE’s Chief Economist.
The material has been provided by InstaForex Company – www.instaforex.com
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