Portfolio

FX round-up: Pound edges higher despite Brexit headwinds

By Alexander Bueso

Date: Friday 02 Mar 2018

FX round-up: Pound edges higher despite Brexit headwinds

(ShareCast News) - Cable saw slight gains on Thursday, against the backdrop of what some analysts described as a more dovish testimony from US central bank chief Jerome Powell.
In his second day of testimony before the US Congress, this time before the Senate Banking Committee, "Powell maintained an upbeat view of economic prospects but was careful not to sound to overly hawkish. He said wage and inflation rates are unlikely surge higher," according to Kathy Bostjancic at Oxford Economics.

His remarks saw the pound edge higher against the US dollar, from 1.3760 to 1.3776.

Meanwhile, the US dollar spot index slipped from 90.613 the day before to 90.32 as of the Thursday close.

Bostjancic also highlighted the new Fed chief's indication that further strengthening in the labour market could likely take place without fueling a large acceleration in wage growth.

To take note of, Sterling's gains came about despite remarks from European Council chief Donald Tusk, who after a meeting with May said EU leaders were "not happy" with her negotiating stance.

They also came despite data on initial weekly US jobless claims printing at their weakest lowest since 1969 and a better-than-expected reading on the ISM's key manufacturing sector activity gauge.

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