Pound Appreciates After BoE Pill's Remarks
July 10 2024 - 8:10AM
RTTF2
The pound moved up against its major counterparts in the New
York session on Wednesday, as comments from Bank of England Chief
Economist Huw Pill cast doubts on a rate cut in August.
Speaking in London, Pill said that although headline annual
inflation returned to the 2% target in May, it's not enough to
attain the target on a sustainable basis.
"Some work to do before domestic persistent component of
inflation is gone."
"I'm reluctant to be drawn on whether I'm cautious or not about
cutting rates, important to get balance right," he added.
Investor sentiment improved after Federal Reserve Chair Jerome
Powell suggested the case for interest-rate cuts is becoming
stronger due to slowing inflation.
The pound advanced to near a 4-week high of 0.8425 against the
euro, 4-week high of 1.2846 against the greenback and a 1-1/2-month
high of 1.1552 against the franc, off its early lows of 0.8459,
1.2779 and 1.1472, respectively. The next possible resistance for
the pound is seen around 0.83 against the euro, 1.31 against the
greenback and 1.21 against the franc.
The pound touched 207.79 against the yen, its highest level
since August 2008. If the currency rises further, it may find
resistance around the 213.00 level.
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