Will the BOE Governor's Statement Emphasize GBP? - Kakiforex | Forex markets for the smart money. Will the BOE Governor's Statement Emphasize GBP? Will the BOE Governor's Statement Emphasize GBP?

February 26, 2021

Will the BOE Governor's Statement Emphasize GBP?

 Market sentiment seems to be still on the US dollar to continue trading higher against most major currencies at the beginning of the European session.


The dollar index, which measures the strength of the greenback dollar against a basket of major currencies traded at 90.40, after gaining support from a 10-year increase in US bond yields.


The strengthening of the greenback has prompted pound trading to fall below its nearly three-year high on Thursday, trading below 1.40000.



Bank of England (BOE) Governor Andrew Bailey said on Friday that the UK economy is likely to record negative growth in the first quarter of this year.


However, he expects the recorded economic contraction may be smaller compared to the recession recorded in the second quarter of last year.


Bailey added that the impact of Covid-19 on the economy was felt to be very uneven as there were some divisions, especially the services sector that relied on social relations were severely affected, while other divisions were not affected.


Bailey, however, stressed that there are new hopes emerging for a stronger recovery following the government's plans to loosen sanctions, expand vaccination programs and reductions in the Covid-19 case.