Sterling slides against dollar for first time in four days
2017-10-12 16:28:30 GMT (
Sterling slides against dollar for first time in four days

Sterling declined in American trade against the dollar, following an array of data and developments from Britain and the US, including remarks by chief Brexit negotiator from the EU side, Michel Barnier, in Brussels, in addition to speeches by Federal Open Market Committee members Lael Brainard and Jerome Powell. 


As of 04:51 GMT, GBP/USD fell 0.39% to 1.3172 from the opening of 1.3223, with an intraday low at 1.3122, and a high at 1.3265. 


Earlier UK data included the Bank of England's survey for credit conditions, in addition to remarks by Michel Barnier, who said that there hasn't been any serious discussions yet on the financial settlement issue, noting that the deadlock in negotiations hurts sentiment and raises concerns for investors and tax payers. 


Otherwise, earlier US data showed unemployment claims fell more than expected last week, as producers prices grew 0.4% in line with expectations in September, as core prices accelerated to 0.4% beyond forecasts. 


Similarly, FOMC member Lael Brainard participated in a panel discussion about monetary policy at the Peterson Institute for International Economics, in Washington DC, where she said in case of a future recession, it might be better to organize the rate hike process by committing to zero level rates until inflation hits the target, noting that a delayed march by inflation towards 2% is enough case against early rate hikes. 


Additionally, Powell delivered a speech titled "Prospects for Emerging Market Economies in a Normalizing Global Economy" at the Institute of International Finance Annual Membership Meeting, in Washington DC, where he expected further tightening of policy in a gradual manner as the economy improves. 


Powell said that developing markets can adapt to a tightened US monetary policy, noting that a rise in financial infusions to developing economies bolster the future outlook, while adding that a sharp increase in corporate debt is a point of weakness for many developing economies, especially China. 

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