TheÂ Sterling pound today fell toÂ new lows against theÂ US dollar following aÂ dovish speech byÂ theÂ Bank ofÂ England‘s newest member Jonathan Haskel atÂ his appointment hearing before theÂ UK Parliament. Haskel’s comments coupled with renewed US dollar demand served toÂ trigger theÂ selling ofÂ theÂ pound given that Haskel is replacing aÂ hawkish BoE member.
TheÂ GBP/USD currency pair today declined from aÂ high ofÂ 1.3292 toÂ aÂ low ofÂ 1.3207, but later retraced some ofÂ its losses.
TheÂ currency pair was inÂ aÂ consolidative range during theÂ Asian session, but broke down after Haskel’s dovish comments. Johnathan Haskel stated that theÂ UK has been experiencing “very retarded” investment, which has resulted inÂ low productivity growth, andÂ has made interest rates less effective inÂ stimulating business investment. Haskel is replacing Ian McCafferty who is regarded asÂ aÂ hawkish member ofÂ theÂ BoE’s Monetary Policy Committee given that he recently voted forÂ aÂ rate hike. Investors interpreted Haskel’s speech asÂ dovish, which is what triggered theÂ Sterling pound’s sell-off.
TheÂ release ofÂ theÂ positive UK BBA loans forÂ home purchase data had aÂ muted impact onÂ theÂ currency pair. Haskel also commented that there many be aÂ lull inÂ theÂ UK economy depending onÂ theÂ Brexit negotiations.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ Conference Board’s US consumer confidence index scheduled forÂ later today.
TheÂ GBP/USD currency pair was trading atÂ 1.3249 asÂ atÂ 12:47 GMT having dropped from anÂ initial high ofÂ 1.3292. TheÂ GBP/JPY currency pair was trading atÂ 145.27 having fallen from aÂ high ofÂ 145.69.
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