GBP jumps higher on Juncker comments, BoE unchanged…
The Bank of England meeting was a non-event yesterday, the central bank steered the course, sticking with much of the usual rhetoric. The highlight of the day arrived in the early evening via a Sky News interview with Jean-Claude Juncker.
In the interview, Juncker sounded incredibly upbeat about the prospect for a last minute deal. This is in stark contrast to his usual negative concerned tone. The news quickly crossed news wires and within 20-minutes GBPUSD had jumped above $1.25 and was well and its way to $1.2550, where it encountered some light resistance. The GBPEUR pair finds itself heading to the €1.14 mark where it should find a patch of resistance from previous movement. Friday morning, when European trade will be in full-flow, will be the real test of how participants feel about this news.
Today’s trading session is very light on economic numbers. Participants will continue to trade on the back of Wednesday’s FOMC announcement where rates were cut once more but the signalling for the future path of interest rates was not as dovish as some had hoped for.
Written by Viv Savani. 9:01am, September 20th 2019
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