The British pound had had some difficult moments in its operations in the last two weeks, as uncertainty returned to the British currency. However, on Friday, the British pound recorded a maximum of 8 months in the Forex market. This is due to the generalized fall of the dollar, due to the declarations of Jerome Powell, this Thursday.
The Brexit has been the stone that holds back Britain’s progress in recovering its Bitcoin Lifestyle economy and the strength of its currency. Well, the pound has had to deal with multiple recessions and blows to its economy.
However, there are times when the pound manages to take a break. And, in this case, it was thanks to the drastic fall of the dollar. After the president of the U.S. Federal Reserve gave statements on the future of the U.S. economy.
Now, the pound sterling scores a maximum of 8 months against the dollar and a basket of currencies.
The dollar gives way while waiting for Powell from the Fed
Sterling surpasses the dollar and scores a maximum of 8 months
The British currency climbed above $1.33 for the first time in 2020, and marks an 8-month high in the Forex market. This is supported by good economic figures from England.
Since the governor of the Bank of England, Andrew Bailey, stated that the British central bank had even more mechanisms to support the economy.
There is evidence that the large and aggressive stimuli against the Coronavirus were effective and will continue in this way, thus achieving a maximum of 8 months in the free market.
In contrast, economic forecasts for the United States are totally uneven. Being guided more towards a negative future for the American currency, according to reports from Reuters.
For during his speech at the Jackson Hole Virtual Symposium, Jerome Powell fed expectations that U.S. interest rates could remain low for a long time.
This by pointing out that the US central bank would aim for inflation to average 2%, instead of reaching exactly that level. Thus discouraging traders and investors from keeping their operations in the dollar.
However, traders and investors are avoiding adopting strong views on the pound. Since most investors are staying away from the scarce trades in August. And they have their expectations high, as now that Sterling is hitting an 8 month high, traders are more confident about the currency.
Sterling continues to rise as the dollar falls
Quote of the pound sterling for the date
At the time of writing, the pound is trading at an 8-month high in its GBP/USD pair at $1.3337, its highest level since mid-December. Clearly beating the dollar with this quote during the session.
In addition, it seems that the outlook is positive for the pound, even more so now that it has scored a maximum of 8 months.
Well, Prime Minister Boris Johnson, will launch a public campaign next week to get Britain back into the workplace, to encourage people to take up jobs and revive the British economy even faster.
In this way, Britain is trying to find a way to revive its service-based economy even as COVID-19 remains a threat.
Will the pound be able to maintain this streak in the coming weeks?