GBP/USD has hit a five-week low as Powell powered-up the dollar. Speculation about new UK QE and US jobless claims stand out, FXStreet’s analyst Yohay Elam briefs.
Key quotes
“Jerome Powell, Chairman of the Fed, said the bank has room to add more stimulus to support the economy but rejected the idea of setting negative interest rates. Andrew Bailey, Governor of the BoE, also rejected that idea.”
“Bailey did open the door to expanding the bond-buying scheme and also added that the BOE stands ready to help finance the government’s spending in these times of crisis.”
“The pound’s decline is mostly driven by the downbeat prospects for the UK rather than outright fears of currency devaluation. Another concern is a no-trade-deal Brexit, which remains on the cards as EU-UK talks continue without evidence of a breakthrough.”
“US Jobless Claims are set to shower fewer new applications, yet an elevated rate of 2.5 million.”
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