Investment houses are keen on prospects that the English pound will perform more strongly as the region's central bank works to offset anticipation about adjustments to borrowing costs, Bloomberg reports.
After having touched its top value since 2009 against the U.S. dollar last week, the pound endured some losses during the Wednesday trade session after the Bank of England discussed quarterly inflation prospects. Governor Mark Carney has said that he prefers to see a stronger labor market prior to increasing interest rates.
Investment houses like Bank of New York Mellon, Mizuho Bank Ltd., and others remain optimistic about the pound's prospects. During the past year, the monetary year has climbed roughly 10 percent against the greenback.
"Sterling will come back to fight another day," Foreign-Exchange Strategist Gavin Friend with National Australia Bank in London told Bloomberg on Wednesday. "The dynamics of a strengthening economy place the U.K. well above its peers and it's likely to be the first major economy to raise interest rates."
Investing.com reports Carney also pointed to the body's efforts to monitor economic growth and development.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.