Sterling Pushes Higher After BoE Comments

The Pound Sterling was higher after one deputy governor of the Bank of England reinforced the markets’ view that a rate increase would soon be forthcoming. David Ramsden, viewed previously as a dove, said over this past weekend that he soon expected a rate hike; in November 2017, it should be noted that Ramsden was one of the no votes for a rate hike among the BoE’s Monetary Policy Committee members. One FX strategist in London said that Sterling’s primary driver has been comments from BoE members and that there is little surprise that the view of former doves appears to be shifting.

As reported at 11:06 am (GMT) in London, the GBP/USD was trading higher at $1.4062, a gain of 0.70%; the pair earlier hit a peak of $1.4070 before easing back while the session low is at $1.3963. The EUR/GBP is trading at 0.87842 Pence, down 0.1997%; the pair has ranged from a session low of 0.87700 Pence to a high of 0.88034 Pence.

Brexit Hopes Provide Pound Support

Also helping the Pound was growing optimism over the Brexit talks with Jeremy Corbyn floating the idea that Britain could support a customs union after the Brexit occurs. According to analysts, that would be more appealing to market players; moreover, a “softer” Brexit could provide Corbyn with party support against Theresa May which may lead to a defeat in the UK Parliament.