The Dollar bounces back, the GBP higher after the BoE

By Peter Nurse

The u.s. dollar rose Thursday in early in the day in the european exchanges, strengthening, despite a series of economic data are failing. The british pound showed its strength after the Bank of England remained pending.

Has 11: 25 am, the us dollar index, which tracks the greenback against a basket of six other currencies, was $ 100,332, an increase of 0.2%, while EUR/USD fell 0.1% to 1,0780. USD/JPY rose 0.3% to 106,47.

The us dollar had pushed up during the night after economic data showed that private employers have laid off a record number of $ 20.2 million workers in April.

Analysts predict that 3 million more Americans sought unemployment benefits during the last week, these data have to be published on Thursday.

The pound sterling has recovered from a low of two weeks against the dollar after members of the monetary policy committee of the Bank of England have unanimously decided to maintain interest rates at 0.1% and opted by a margin of 7 against 2 for the maintenance of its quantitative easing program at 200 billion pounds.

At 11: 25 am, GBP/USD rose 0.1% to $ 1,2349.

It was expected that the central bank maintains rates unchanged, but some economists thought that the MPC could modify its bond purchase program – in the end, two members voted for an increase of 100 billion pounds.

The publication of a briefing with the governor of the BOE’s Andrew Bailey will follow later in the day on Thursday.

Elsewhere, the Turkish lira fell to a record level earlier in the day, investors are concerned about the impact of the pandemic coronavirus, falling below the record level of 7.24 per dollar achieved during the last major currency crisis in the country by August 2018.

The lira has fallen by more than 16% this year, and with the absence of a line, swap the Fed and the exhaustion of foreign exchange reserves, it is difficult to envisage an increase of the currency.

At 11: 25 am, USD/TRY traded to 7,2290, a rise of 0.5%.

The other hand, the pair USD/CNY has lost 0.2% to 7,0912 after China’s exports rose unexpectedly in April of 3.5% compared to the previous year, marking the first positive growth since December of last year, showed customs data on Thursday.

The central bank Norwegian will meet later in the day on Thursday, and it is widely expected that it remains pending today, maintaining the rate of sight deposits at 0.25%.

“Compared to its last economic projections of 13 march, the Bank of Norway has already reacted to the deterioration in the outlook, reducing the rate by 75 basis points extra on march 20”, said the Danske Bank, in a research note.

Has 11: 25 am, USD/NOK}
was trading at 10,2858 down 0.1%.

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