Great Britain Pound Retreats After Prior Rally

The Bank of England retreated today following the rebound of the US dollar. Earlier, the sterling rallied against some of its rivals thanks to comments from various UK policy makers and politicians.

One of the comments was the signal from Bank of England Deputy Governor Dave Ramsden that interest rates may be raised relatively soon. He said in an interview on Saturday:

I see the case for rates rising somewhat sooner rather than somewhat later.

The remark spurred talks that the BoE may lift rates as soon as in May. Now, traders wait to see if BoE Governor Mark Carney will say anything on the matter in his speech on Friday.

Meanwhile, Labour Party leader Jeremy Corbyn spoke in favor of Britain staying in a customs union with the European Union to ensure tariff-free trade. He said:

Labour would seek a final deal that gives full access to European markets and maintains the benefits of the single market and the customs union… with no new impediments to trade and no reduction in rights, standards and protections.

GBP/USD slid to 1.3963 as of 19:34 GMT today after opening at 1.3987 and touching the daily high of 1.4069. EUR/GBP rallied from 0.8787 to 0.8814, bouncing from the daily low of 0.8771. GBP/JPY was down from 149.90 to 149.39, touching the session low of 148.98 earlier.

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