The British pound currency regained much needed strength in trading sessions. The support came from the bounce back of the U.S. Treasury yields and the announcement of China’s central bank.
The People’s Bank of China said that they will use market-based reform plans to help lower lending rates and support China’s slowing economy.
The pound edged against other major currencies in today’s trading from the news. The EURGBP trading pair inched up 0.30% or 0.0028 points, trading for £0.9156 compared against its previous close of £0.9156. The pair reached ranges between £0.9112 and £0.9165 in sessions.
The CNY to GBP exchange pair slightly moved up by 0.08% or 0.0001 points. The CNYGBP currently trades at £0.1170 and has reached ranges of £0.1166 to £0.1171.
The USD to GBP gained 0.25% or 0.0020 points, trading at £0.8248 against its last close of £0.8228. The pair reached levels of £0.8215 to £0.8253.
And the AUD to GBP rose a mere 0.14% or 0.0008 points in today’s sessions. The pair presently trades at £0.5590 and has hit ranges between £0.5572 and £0.5595.
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The pound’s strength also came from the recent data about UK house sales. The report showed Britain’s house sales advancing 6.1% year-on-year this month.
Sterling traders are expecting a very volatile ride in for the currency. Brexit optimism may have carried the British currency in current sessions, but some traders are still skeptical.
Just recently, BoE’s Mark Carney commented about the possibility of a hard Brexit and its effects. The British currency had a lid to its gains and has not been successful in gaining much altitude. All traders can do now is wait for progress.
As the Brexit date closes in, every comment from officials and news from the administration weighs heavier to the British currency. The current state of the United Kingdom shows that it is not ready for a harsh Brexit.
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