Sterling rebounds from one-month low versus dollar

Economies.com
2017-11-06 17:04PM UTC

Sterling rose past 1.31 against the dollar in American trade, away from the lowest since October 6 for the second session in a row, following statements by Prime Minister Theresa May and Bank of England Governor Mark Carney, while markets look forward to Federal Reserve Bank of New York President William Dudley's speech later today.

 

As of 05:42 GMT, GBP/USD rose 0.38% to 1.3127 from the opening of 1.3076, with an intraday high at 1.3129, and a low at 1.3059. 

 

Earlier, May said during a meeting with several British businessmen that it's important to avoid sudden shocks resulting from Brexit, and noting there's enough time to prepare for the exit from the Union.  

 

May added that her country managed to overcome the financial crisis, announcing a new phase for the British economy, and asserting the need for a stronger, more balanced and just economy, while also welcoming inside discussions on the future of Britain after Brexit and expressed her desire to give more certainty to businessmen towards the future. 

 

On another note, Carney said UK growth could face a slowdown if an agreement wasn't reached regarding Brexit, adding the BoE might not be able to cut interest rates even during economic slowdown due to inflation, but he promised the bank will work had on the dilemma if occurred.  

 

Otherwise, Fed's Dudley will speak about lessons from the financial crisis at the Economic Club of New York luncheon, after reports said he might retire next week while remaining a member of the FOMC until the second or third quarter of 2018 until a replacement takes his place. 

 

Earlier news reports indicated the US administration didn't intervene in the retirement decision despite its plans to restructure the Federal Open Market Committee, while president Donald Trump recently nominated FOMC member Jerome Powell to chair the Fed after Janet Yellen's current term ends in February, and also indicated there were four candidates to join the Committee later. 

 

The position of the New York Federal Reserve Chair is a crucial one, for its known importance in the financial and monetary policymaking sphere in the US, with the the president of the bank usually impacting stock exchanges regularly with his/her remarks, and the holders of the position has a permanent right to vote in the FOMC.

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