On Wednesday, the evergreen buck stood still notwithstanding a dive in American equities overnight…
British pound reaches 1-1/2 month minimums
On Thursday, the British pound declined to one-and-a-half month minimums versus a strengthening greenback because hopes for faster lifts in American interest rates in 2018 kept backing the US currency.
The currency pair GBP/USD reached a minimum of 1.3732, which is the weakest result since January 15.
The evergreen buck was backed after on Tuesday fresh Fed Chair Jerome Powell ascertained that the economic outlook in the United States was still upbeat, thus driving bets on further Fed rate lifts in 2018.
The remarks powered hopes that the Federal Reserve might deliver up to four rate lifts in 2018, rather than the three it had previously projected.
Hopes for rallying borrowing costs usually underpin the evergreen buck because higher rates make the American dollar more tempting to yield-seeking traders.
Market participants were waiting for Powell’s second day of congressional testimony later in the day in order to find out whether Fed Chair would reaffirm his aggressive view of the American economy or not.
The British pound was pressured after Tuesday’s data disclosed that in February British factory activity surge reached its lowest value for eight months in the face of uncertainty over Brexit.
Research company Markit told that the previous month its manufacturing purchasing managers’ index went down from 55.3 to 55.2.
The British pound was also suppressed by renewed concerns over Brexit after Theresa May, UK Prime Minister told that the EU's draft legal text uncovered on Wednesday would have Britain undermined and it would also endanger its constitutional integrity.
Versus the common currency the British pound slumped, with EUR/GBP adding 0.15% being worth 0.8875.
Thursday’s data showed that in the euro zone manufacturing activity stepped down a bit the previous month, although stood firm.
The EU’s manufacturing PMI headed south to 58.6 last month versus January’s reading of 59.6.
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
On Monday, the Chinese Yuan headed south, while the evergreen buck rallied because US-China relations worsened over the weekend…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…