StockTop News

Cable Claws Back Losses as BoE’s Haldane Touts V-Shape Recovery

2 Mins read
imageForex12 hours ago (Jun 30, 2020 03:13PM ET)

(C) Reuters.

By Yasin Ebrahim – The pound surged against the dollar after clawing back early-day losses Tuesday, as the Bank of England suggested that the U.K. was on track for a stronger than expected rebound following its worst slump in more than 40 years in the first quarter.

GBP/USD rose 0.74%, to $1.2385.

U.K. gross domestic product declined 2.2% in the first quarter of 2020, its worst slump since 1979.

The Bank of England chief economist Andy Haldane was set for a V-shaped recovery but flagged rising unemployment as a growing threat to the recovery. “It is early days, but my reading of the evidence is so far, so V,” Haldane said.

“Today’s unexpected downward revision to GDP numbers came as the pound seemed on course for its fourth consecutive down week against its main peers, largely on concerns about the risk of the U.K. leaving it transitory membership of the EU’s single market at year end and shifting to trading on less-favourable WTO terms,” Action Economics said in a report.

The strong rebound in the pound comes despite little sign of progress on the latest post-Brexit talks.

EU Brexit negotiator Michel Barnier slammed Britain for choosing not to extend the deadline for the transition period that ends on December 31 and trying to keep as many single market benefits as it can while showing little compromise on key sticking points including the level playing field, security and fisheries.

The level playing field sets out what access the U.K. could have to the European single market after Brexit.

Cable Claws Back Losses as BoE’s Haldane Touts V-Shape Recovery

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related posts
Editor's PickInvestor StrategyTop News

Regus owner IWG slammed by landlords after threat to dissolve £790m of lease guarantees

2 Mins read
The serviced offices giant formerly known as Regus has declared war on landlords by threatening to dump hundreds of lease commitments…
Investor StrategyStock

THE ESPORTS ECOSYSTEM: The key players and trends driving the red-hot, fast-growing esports space that's on track to surpass $1.5 billion by 2023

4 Mins read
Esports Industry in 2020: Key Stats & Market Growth Trends – Business Insider Business Insider logoThe words “Business Insider”. 2019-12-18T16:14:00Z This is…
Investor StrategyStock

Amy Coney Barrett's nomination means a more conservative Supreme Court is primed to weaken or nix Roe v. Wade. Here are 18 abortion cases in the pipeline to the high court.

11 Mins read
It’s the worst-case scenario that reproductive rights groups have feared for years: A solidly conservative Supreme Court that could chip away or…
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Leave a Reply

Your email address will not be published. Required fields are marked *