2 March, 2017
The British pound has dropped sharply today against it’s US counterpart on heightened expectations of a rate hike from the US Federal Reserve this month, as well as a vote by the house of lords to amend the bill for Britain to leave the European union,
At 9.31pm (GMT) the British currency was trading at $1,2300 down from $1.2410 in yesterday’s trading.
In comments late yesterday, San Francisco Fed President John Williams said an interest-rate hike “is on the table for serious consideration” in March.
“The aim is to keep the economic expansion on sound footing, not too hot, not too cold, that can be sustained for as long as possible,” he added.
New York Fed President William Dudley also weighed in on the subject by noting that the US economy is moving forward and as each day goes by the case for a rate hike becomes stronger,
“We’re very much on the trajectory that we said — that we thought we’d be on and we said if we were on that trajectory, we’re going to gradually remove accommodation,” he added, so, put it all together, I think the case for monetary policy tightening has become a lot more compelling,” he said.
Also, affecting the pound was the shock defeat for the government by the House of Lords in a vote 358 to 256 in favour of an amendment from the government to secure the rights of EU citizens in the UK.
Although they didn’t demand immediate action the decision requires the Prime minister to guarantee the rights of EU citizens living in the UK within 3 months of triggering article 50, the process to leave the EU.
The decision now needs to go back to the house of commons for approval and if rejected, is like to cause a period of instability in the British economy as well as put further pressure on the pound.
A declining stock market is always good for gold as investors look for somewhere safe to ride out the uncertainty. Precious metals are seeing buying...
The British pound is powering ahead today against its US counterpart as more positive data raises speculation that a rate hike from the Bank...
After a horror 6 months the gold price has found much needed support over the last 4 weeks and is now sitting above the $1,200 mark and depending...
As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major...
The US China trade war has now come to the top of the headlines again with US President Donald Trump keen to go ahead with an extra $200 billion...
Just when we thought that a deal between the European Union and Great Britain was in the making and thus avoiding a hard Brexit, another spanner...
The British pound has surged back through the $1.30 mark after progress made today on Brexit negotiations raised speculation that a deal...
The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...
The last 2 months has been extremely painful for those who invested in gold with the precious metal plummeting more than $100 and at the time...