Does Anyone Know Why The Pound Rises, Even Though The USD Is Strong? - Kakiforex.com - Financial Market Media No. 1 in the World Does Anyone Know Why The Pound Rises, Even Though The USD Is Strong? Does Anyone Know Why The Pound Rises, Even Though The USD Is Strong?
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May 28, 2021

Does Anyone Know Why The Pound Rises, Even Though The USD Is Strong?

 Expectations of an interest rate hike resonated at the Bank of England (BOE), after policymaker Gertjan Vlieghe said the central bank is likely to raise interest rates next year.


Vlieghe also noted a rate hike could happen earlier if the economy displays a faster -than -expected recovery.


It should be noted, however, that Vlieghe will leave his post at the BOE at the end of August, so this may be just his view.


The central bank committee will also decide on a rate hike without him in the future, so his statement will only provide short -term impetus.


Although this support was only seen temporarily, the pound managed to capitalize on the opportunity to rise higher ahead of weekend trading.





In the Asian session, the pound traded stronger around a three -month high against the greenback dollar which also showed a strengthening.


Meanwhile, the U.S. dollar enjoyed gains from higher U.S. bond yields after a New York Times report that U.S. President Joe Biden will announce a $ 6 trillion budget for 2022.


Also supporting the price strengthening, was the number of US jobless claims which showed a lower decline last week, signaling the job market continues to move towards recovery.


At the time of writing, the dollar index is trading steady against most major currencies around the price of 90.05.