bitcoin and litecoin 1xbet
Business News

Pound US Dollar exchange rate: GBP/USD flat, no-deal Brexit may force BoE to slash rates

Mr Vlieghe stated that the bank may need to slash interest rates almost all the way to down to zero in the event of a no-deal Brexit. He also added that it is not clear how long it would then take interest rates to rise once again. The BoE official stated: “On balance I think it is more likely that I would move to cut Bank Rate towards the effective lower bound of close to 0 per cent in the event of a no-deal scenario.

“It is highly uncertain when I would want to reserve these interest rate cuts.”

Meanwhile, the US dollar failed to push higher against Sterling despite Thursday’s stronger than expected inflation data.

The strong Consumer Price Index (CPI) data did little to curb expectations that the Federal Reserve will begin slashing interest rates as soon as the end of this month.

Thursday’s inflation data showed that the core US CPI rose by 0.3 per cent in June, the highest increase since January 2018.

Commenting on this, Head of Currency Research at Commerzbank, Ulrich Leuchtmann said: “Cutting interest rates when inflation data is weakening makes sense, but signaling a dovish stance when inflation is rising is a bit weird and suggests there are political pressures weighing on the Fed.”

However, the dollar remained under pressure as Federal Reserve Chair Jerome Powell kept the focus on global risks that may trigger a rate cut as he testified before Congress.

Meanwhile, Mr Powell’s colleagues from the Fed focused on the continued growth of the US economy and a solid business outlook.

On Thursday, Atlanta Federal Reserve Bank President Raphael Bostic stated: “I am not seeing the storm clouds actually generate a storm yet.

“With very few exceptions businesses are telling me the economy is performing as strong as it was. They are not seeing weaknesses in consumer engagement. And they are not materially changing their plans.”

Looking ahead to this afternoon, sentiment in the US dollar could be dampened following the release of the US Producer Price Index (PPI).

If PPI stagnates or slides further than forecast in June, it could cause the dollar to slump.

Let’s block ads! (Why?)

Choose Which Assets to Trade

Bitcoin Market Price Chart in RealTime


Get News Update Daily - It is Your Right

Most Trending News On Sleekarena

Bafana Bafana footballer, Mark Batchelor, shot dead outside his home in Johannesburg

Lekki Pastor anointed and blessed with #3 million by Prophet Jeremiah Omoto Fufeyin

Meet The Male Besties Who Share Same Girlfriend, Claim They Both Love Her (Photo)

Oh No! Bayelsa Commissioner, Agatha Goma, Is Dead

Buhari, APC, INEC Object To Move By Atiku, PDP To Play Video At Tribunal

Buy or Sell Bitcoin and Litecoin
To Top