The decline in May payrolls was so severe it is statistically likely to have a lingering effect on the dollar for the next 90-days, say analysts at Bank of America Merril Lynch (BofAML)
The pound neared six-week highs against the dollar after the BOE’s quarterly inflation report largely left intact expectations it could boost rates on the early end of next year.
New forecasts concerning the pound to dollar exchange rate (GBP/USD) confirms the end of declines may have finally taken place.
Pound sterling looks set to continue its new-found upside traction against the US dollar following some strong economic news out of the UK.
The British pound (GBP) has enjoyed strong gains against the US dollar as global investors rush to safety.
Market activity is likely to die off substantially after the upcoming week. But before the market can go on holiday, there is the important issue of the Dec 17 Federal Reserve meeting on monetary policy.
The US dollar exchange rate complex has made a comeback after days on the back-foot in global FX.
The US dollar may have been caught looking exposed to the latest bout of Greek economic and political woes, but it’s outlook against the British pound remains positive.