Pound Gains In The Market Awaiting BOE Report
by Latisha Liming
The Sterling Pound gains momentum with renewed hopes for Brexit negotiations. The economic reports coming out of the country also show a stable economy which has helped the currency to strengthen in the market. At the start of weekly trading on Monday, Pound gained ahead of the G10 forex currencies in the market. The pre-position is a mere implication of the investors’ interest in the release of the Bank of England financial stability report. Governor Mark Carney is also about to appear for a press conference and this has increased hope among the investors.
Following the Brexit referendum, many generous liquidity provisions were introduced. The FPC policy meeting committee is more likely to bring about changes to the existing policy and tighten the monetary conditions in the country. Currently, UK has highly accommodative credit conditions which could indicate malinvestments.
The introduction of new monetary policies for the nation could be useful as the country is getting ready for Brexit negotiations. The weakening of the US dollar due to the weak US durable goods has also indirectly helped the Pound to gain in the market.
The Asian trade proved to be beneficial for the Asian stocks and as a result, the Japanese Yen value decreased in the market. With a flourishing market condition, investors are not interested in the anti-risk currency. Nikkei 225 equities benchmark along with S&P 500 showed upward movement on Monday market trading.
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