Pound rebounds after BoE report

29 November, 2018

It is interesting how Sterling is appreciating despite the Bank of England’s financial stability report warning of a disorderly Brexit unleashing a savage recession.

A negative scenario where the UK crashes out of the European Union with no deal in place could result in GDP tumbling 8% within a year, while Sterling is projected to weaken 25% to below parity against the Dollar. With inflation expected to jump 6.5% amid a severely depressed Pound and unemployment seen rising to 7.5%, the outlook in an event of a no-deal outcome looks highly unfavourable. On the bright side, the Bank of England stated that a close economic partnership with the EU could boost GDP growth by 1.75% over the next five years. It seems investors are focusing on positive aspects of the BoE’s financial stability report to push the Pound higher. Today’s report is likely to provide Theresa May some ammunition when she sells her Brexit deal to parliament.


Source link  
Global risk sentiment revived

A sense of positivity is sweeping across financial markets on Tuesday amid signs of progress in trade negotiations and hopes of stimulus...

Will money printing machines get back to work?

Equity markets in Asia kicked off the week in green territory as US bond yields edged higher following a positive...

Trade tensions reach crescendo

Investors are struggling to shake off the pounding hangover from yesterday's dramatic global selloff as US-China trade tensions took...


Dollar humbled by disappointing data

The Dollar was close to surrendering all of Thursday's gains after US Manufacturing PMI figures missed market expectations by falling...

Pound takes all the heat

The Euro enjoyed some stability today as investors directed most of their attention towards the battered Pound. With the Euro appreciating against every...

Pound slumps to new two-year low

It has been under a week since Boris Johnson became the new UK Prime Minister and already the British Pound is sinking deeper into...


Gold searches for a fresh catalyst

Gold struggled for direction on Monday thanks to a miscommunication about monetary policy from the Federal Reserve last Friday.

Sterling shaky ahead of new UK PM announcement

The British Pound is shaky this morning as anticipation mounts ahead of the announcement of the next Tory leader and Prime...

Markets await Powell perk up

Asian stocks are eking out slight gains after the S&P 500 continued easing off its record high, as investors await fresh reasons to...

  


Share it on:   or