Sterling was able to make impressive gains on Thursday as Cable surpassed the 1.38 handle. The Financial Times yesterday reported on the Bank of England’s (BoE) new Chief Economist. Huw Pill, who starts his new position on September 6th, will move from Harvard Business School, where he has been a Senior Lecturer for nearly 4 years. Pill is “known for orthodox thinking on monetary policy and interest rates, and supportive of limits on quantitative easing to under pin the economy”. Before a lengthy stint at the European Central Bank (ECB), Pill worked at Goldman Sachs. Former colleagues have “described him as a monetary policy hawk”. Pill himself has said it is a great privilege to join “the bank and have the opportunity to contribute to the work of the MPC”. Governor Andrew Bailey also said, “Huw will make a major contribution to monetary policy”.
Across the channel the Eurozone has suffered drastic setbacks to its supply chain due to “virus linked delays and shortages of materials”. Operations are so bad that “the gap between the output of Eurozone manufacturers and the orders they receive has widened to a 24-year record”. It has been reported that European ‘big’ carmakers have struggled to keep up with rising global demand due to shortages of many materials”. Chris Williamson, Chief Business Economist at IHS Markit, noted that “these supply issues were the primary cause of a shortfall of manufacturing production relative to orders of a magnitude not previously recorded by the survey, surpassing the 24-year record deficit seen in July”.
GBPUSD opened yesterday at 1.3780 and closed at 1.3834.
GBPEUR also caught some upside in yesterday’s session. The pair started off at 1.1635 and finished at 1.1657.
EURUSD also made gains due to a weaker Dollar. The pair opened at 1.1843 and closed at 1.1867.