Oil price rises for the fourth consecutive day based on lower US stocks
Oil Price Forecast: 5th August 2020 The oil price rose in European Session to continue…
GBPUSD rose on Tuesday morning in the UK forex market, recording the third consecutive daily rise and its highest level in nearly a week. This comes in light of the US dollar continuing to decline against most major currencies, and amid markets anticipation What is new is valuable regarding US monetary policy, especially after the mixed data on the labor sector.
The GBPUSD pair traded at the level of $1.3897, adding more than 0.4% from the opening level of the session at $1.3839, and it closed yesterday’s session with a gain of 0.1% against the US dollar for the second day in a row within the rebounds from its lowest level in three months.
The British pound recorded last week the fourth consecutive weekly decline, with losses of about 0.4%, due to investors’ desire to buy the US currency as the best safe and alternative investment.
BoE Governor Andrew Bailey spoke last Thursday providing new guidance and expectations for UK interest rates and the economy, as Governor Bailey reiterated that the current high levels of UK inflation would be temporary, with supply and demand expected to recover to normal levels in time.
Inflation refers to the rise in the prices of most goods and services of daily or common use such as food, clothing, housing, entertainment, transportation, and basic consumer goods.
Governor Haldane voiced his concerns, saying that the bank and government are fueling an overheating economy with their stimulus programs, adding that it is therefore approaching a dangerous moment, and Haldane went on to say that the exceptional support for the bank must be scaled back or risk destabilizing the economy and financial system in the future.
In other news, last Wednesday, Britain recorded 27,989 new cases of Covid-19, the highest number since January this year, and during the past week, Britain saw a 72% increase in cases compared to the previous seven days, which is a significant increase.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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