LONDON: Britain’s pound held within recent ranges on Monday, trading just shy of $1.42 as analysts set their eyes on an address by four Bank of England policymakers to a parliamentary sub-committee.
Bank of England Governor Andrew Bailey, in an annual report to parliament’s Treasury Committee, said on Monday he does not see long-term implications from an expected pick-up in inflation as the economy emerges from the coronavirus pandemic.
Michael Saunders, another BoE policymaker, said that he expected the BoE would need to raise interest rates modestly over the next three years if the economy grew as strongly as forecast.
The testimonies did not have much of an impact on the pound, which by 1610 GMT was 0.1% lower on the day at $1.4148 and flat to the euro at 86.29 pence.
Gains in recent weeks have brought the pound back within touching distance of a nearly three-year high of $1.4240 against the dollar, a level it reached in February this year.
The strategists added that they saw a window for the pound to punch above the $1.4235 resistance level this week.
Bets that Britain’s Covid-19 vaccine rollout will enable a quicker reopening of its economy have kept those gains intact, and left sterling the second best performing G10 currency against the dollar this year, trailing only the commodity-driven Canadian dollar.
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