The pound hit a two-month high on Thursday after comments from European Commission President Jean-Claude Juncker that a deal between the UK and Brussels is still possible. The pound was 0.6% higher against the dollar by the early evening and 0.37% against the euro.
Sterling also made slight gains earlier on after the Bank of England decided to keep interest rates on hold at 0.75%. The pound was up 0.1% against the dollar after the announcement. Investors are now watching for any further developments of a potential deal between the UK and the EU, but some are sceptical. Previously EU leaders have described the government’s attempts at proposals as a “smokescreen” and unhelpful in preventing a disorderly exit.
GBPUSD opened at 1.2475 and hit a late morning low of 1.2447 before rising sharply across the rest of the day to hit a high of 1.2445 shortly after closing
GBPEUR opened at 1.1282 and followed a similar pattern, hitting a low of 1.1251 and then hitting a high of 1.1346 in the early evening
The dollar fell against most major currencies on Thursday as some central banks did not follow The Federal Reserve’s second interest rate cut. This boosted the appeal of most other global currencies against the dollar. The dollar lost 0.53% against the Swiss franc and 0.42% against the yen as The Swiss National Bank, The Bank of England and The Bank of Japan all kept their rates on hold.
The euro gained 0.19% against the dollar yesterday morning but elsewhere the Organisation for Economic Co-Operation and Development cut its global economic growth forecast for 2019 and 2020. US GDP is expected to rise 2.4% this year rather than the forecast 2.8% in May.
EURUSD opened at 1.1049 and climbed to a midday high of 1.1068 before dropping back down in the afternoon to close almost unchanged at 1.1047