Forex Market: Sterling Recovers after Losing 1.25

0 Comments

Forex Market: Sterling Recovers after Losing 1.25
Rate this post

 

Forex Market: Sterling Recovers in Tuesday’s trading session after hitting a two-week low against the dollar. A combination of friendlier Brexit talks and better employment data helped the GBPUSD.

Britain’s unemployment rate unexpectedly remained at 3.9% for the three months Bitcoin Loophole through April as businesses resorted to the government’s job retention scheme to keep employees on their books during a record drop in economic output due to the coronavirus crisis.

The dollar weakened when the U.S. Federal Reserve said it planned to begin its corporate bond purchase plan on Tuesday. It had previously announced its Main Street corporate lending program.

Forex Market: Sterling Recovers

This year, the pound has lost almost 5% against the dollar, but rebounded 0.3% on Tuesday, touching $1.2645. Against the EUR, the Pound rose 0.2% to 0.8963.

Steen Jakobsen, Saxo Bank’s chief economist, said that „positive comments“ from Britain and the European Union following the Brexit talks gave a boost to the Pound.

„UK Prime Minister Boris Johnson and EU leaders suggest a more friendly situation than other recent comments,“ Jakobsen said in a note to clients.

The leaders of Britain and the European Union agreed on Monday that talks on their future relationship should be intensified. And Prime Minister Boris Johnson suggested that an agreement could be reached in July.

With a transitional status quo agreement due to expire at the end of the year, Britain is seeking a free trade agreement with the EU, which it left on Jan. 31, but so far negotiators have made little progress, Reuters reported.