Pound Sterling ticks lower as traders continue to favor BoE dovish bets
The post Pound Sterling ticks lower as traders continue to favor BoE dovish bets appeared on BitcoinEthereumNews.com. The Pound Sterling faces slight selling pressure as the BoE is widely expected to cut interest rates in May. BoE’s Greene expects that Trump’s tariff policy will be disinflationary for the UK economy. Washington says that China should be the one to initiate bilateral trade talks. The Pound Sterling (GBP) edges lower against its major peers on Tuesday in the European session. The British currency ticks down as traders become increasingly confident that the Bank of England (BoE) will reduce interest rates in the May policy meeting. The reasons behind these accelerating BoE’s dovish bets are easing United Kingdom (UK) inflation expectations and heightened global economic tensions. Officials from central banks across the globe have signaled that the impact of protectionist policies imposed by Washington will be net disinflationary for their economies, assuming that domestic companies – and particularly Chinese companies – will be forced to sell their products in other markets at lower rates in the face of higher tariffs from the US. On Friday, BoE policymaker Megan Greene also indicated that the potential trade war will be “net disinflationary” for the economy in a discussion with the Atlantic Council think tank. Greene also expressed concerns over “weak productivity” and “risks to the labor market” due to an increase in employers’ contributions to social security schemes. Daily digest market movers: Pound Sterling retraces against US Dollar The Pound Sterling corrects marginally to near 1.3400 against the US Dollar (USD) during European trading hours on Tuesday from its fresh three-year high of 1.3445 posted earlier in the day. The GBP/USD pair retraces as the US Dollar steadies, with investors awaiting a slew of United States (US) economic data releases. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades inside Monday’s range at around 99.20.…
The post Pound Sterling ticks lower as traders continue to favor BoE dovish bets appeared on BitcoinEthereumNews.com.
The Pound Sterling faces slight selling pressure as the BoE is widely expected to cut interest rates in May. BoE’s Greene expects that Trump’s tariff policy will be disinflationary for the UK economy. Washington says that China should be the one to initiate bilateral trade talks. The Pound Sterling (GBP) edges lower against its major peers on Tuesday in the European session. The British currency ticks down as traders become increasingly confident that the Bank of England (BoE) will reduce interest rates in the May policy meeting. The reasons behind these accelerating BoE’s dovish bets are easing United Kingdom (UK) inflation expectations and heightened global economic tensions. Officials from central banks across the globe have signaled that the impact of protectionist policies imposed by Washington will be net disinflationary for their economies, assuming that domestic companies – and particularly Chinese companies – will be forced to sell their products in other markets at lower rates in the face of higher tariffs from the US. On Friday, BoE policymaker Megan Greene also indicated that the potential trade war will be “net disinflationary” for the economy in a discussion with the Atlantic Council think tank. Greene also expressed concerns over “weak productivity” and “risks to the labor market” due to an increase in employers’ contributions to social security schemes. Daily digest market movers: Pound Sterling retraces against US Dollar The Pound Sterling corrects marginally to near 1.3400 against the US Dollar (USD) during European trading hours on Tuesday from its fresh three-year high of 1.3445 posted earlier in the day. The GBP/USD pair retraces as the US Dollar steadies, with investors awaiting a slew of United States (US) economic data releases. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades inside Monday’s range at around 99.20.…
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