Pound Higher On U.K Lockdown Easing, Haldane's Comments
May 26 2020 - 6:34AM
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The pound drifted higher against its key counterparts in the
European session on Tuesday, after the Bank of England's Chief
Economist remarked that the latest economic data were "a shade
better" than the scenario published by the central bank earlier
this month and as the EU reportedly prepared to grant concessions
to the UK on fisheries' stance.
Speaking in an webinar organised by the Confederation of British
Industry, BOE Chief Economist Andy Haldane said that the UK central
bank has not reached remotely a view on taking interest rate
negative so far.
The latest surveys suggest a modest recovery in consumer
spending and business sentiment.
"This is perhaps still a V-recovery but a lopsided V and risks
are of protracted recovery," he added.
Media reports suggested that the European Union is willing to
shift its demands on fisheries in negotiations with Britain next
week.
The EU is prepared for a potential compromise on fisheries in
talks next week, it said.
Prime minister Boris Johnson on Monday said that he will allow
outdoor markets and car showrooms to reopen from June 1, if they
put appropriate safety measures in place.
The restrictions on non-essential shops will be lifted from June
15, unless the outlook worsens on the spread of virus.
The pound appreciated to 2-week highs of 1.2351 against the
greenback and 132.82 against the yen, after falling to 1.2177 and
131.18, respectively in early deals. The currency is likely to face
resistance around 1.25 against the greenback and 135.00 against the
yen.
The pound approached a 1-week high of 1.1933 against the franc
and near a 2-week high of 0.8883 against the euro, compared to its
early lows of 1.1829 and 0.8941, respectively. The currency is seen
finding resistance around 1.21 against the franc and 0.86 against
the euro.
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