The BOE meeting: a ray of hope for the GBP?
The Bank of England will release its monetary policy summary and announce the interest rate on September 19, at 14:00 MT time.
Greenback reaches 9-week maximum
On Wednesday, the evergreen buck managed to hit a nine-week maximum versus a currency basket because the common currency dived on gloomy euro zone data and the UK currency was suppressed due to ongoing investor anxiety over Brexit.
Assessing the purchasing potential of the American dollar against a number of its counterparts the USD index soared by up to 0.5% being worth 96.19.
As for the common currency, it managed to extend its early losses. The currency pair EUR/USD declined by 0.69% being worth 1.1392, which is the lowest result since August 17.
The common currency weakened after data demonstrating that in October euro zone private sector activity headed north at the slowest tempo for more than two years because an export-led deceleration affected the service sector.
The data highlighted fears over the economic influence of levies as well as trade feud.
The row over Italy’s budget was still in focus just a day after the EU dared to take the shocking step of rejecting Italy’s 2019 draft budget, against the backdrop of fears over the influence of increased spending on already high national debt.
Italy’s cabinet has been offered three weeks to have a fixed spending plan resubmitted to Brussels.
The common currency also slumped against Japan’s currency. The currency pair EUR/JPY lost about 0.51% being worth 128.33.
The UK currency reached its one-and-a-half month minimum. The currency pair GBP/USD dived to 1.2889, before rebounded to 1.2920.
The UK currency was still pressured because Brexit negotiations were still stalled with over five months until the United Kingdom is scheduled to escape from the European Union and UK Prime Minister Theresa May heavily criticized over her Brexit strategy.
As for the Canadian dollar, it was intact versus its US rival. The currency pair USD/CAD showed 1.3090.
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Market updates on September 19
The European trading session will be highlighted by the events for the British pound. Traders will pay special attention to the BOE meeting at 14:00 MT.
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