Left Menu
Development News Edition

Pound set for biggest monthly rise in a decade as no-deal Brexit fears fade

Pound set for biggest monthly rise in a decade as no-deal Brexit fears fade
Image Credit: Pixabay

The pound rose on Thursday and could score its biggest monthly rise in more than a decade as the combination of a weak dollar and the falling risks of Britain leaving the European Union without a deal has fueled demand. While the immediate catalyst for the pound's gains was a cautious U.S. Federal Reserve who kept the door open for further policy easing after cutting interest rates for the third time this year, the broader base for the pound's rally this month was some progress on the Brexit deadlock.

British Prime Minister Boris Johnson, who has failed to deliver on his "do or die" promise that Britain would leave the EU on Oct. 31, secured agreement for an election on Dec. 12 after the EU granted a third delay to Brexit. The Conservative Party holds around an 8-point lead over the opposition Labour Party, according to a Survation poll conducted by the Daily Mail.

In its latest updated forecasts, Morgan Stanley and Goldman Sachs put the risk of a no-deal Brexit at a low 5% and assign a 75% probability of a deal followed by the likelihood of 20% for Britain opting to stay within the European Union. Against the greenback, the pound rose 0.3% at $1.2941 and closing in a five-month high above $1.30 hit last week. Versus the euro, the pound has gained 0.2%.

The pound has strengthened more than 5% against the dollar so far this month, its biggest monthly rise since May 2009, according to Refinitiv data. The Fed lowered its policy rate to 1.50%-1.75%, but dropped a previous reference in its statement to "act as appropriate" to sustain the economic expansion.

Also Read: India's relationship with European Union based on shared interests: PM Modi

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....


Latest News

Mahomes, Chiefs romp over Broncos in snow

Quarterback Patrick Mahomes passed for 340 yards and two touchdowns in the snow Sunday as the Kansas City Chiefs won their fourth straight, stuffing the Denver Broncos 23-3 at Kansas City, Mo. Snow began accumulating three hours before kick...

Fox plays video showing Pats filming Bengals sideline

Fox Sports on Sunday morning played footage it claimed to show members of the Patriots staff filming the Cincinnati Bengals sideline last week in an incident that has sparked another NFL investigation into New England. The video, obtained b...

Cricket-Stokes voted BBC Sports Personality of the Year

Cricketer Ben Stokes was voted the 2019 BBC Sports Personality of the Year on Sunday for his World Cup-winning and Ashes heroics during the summer. The all-rounder won the prestigious award, which is voted for annually by the British public...

Clashes rock Beirut for second night as security forces fire tear gas at protest

Smoke engulfed central Beirut as security forces fired tear gas at a protest near Lebanons parliament on Sunday in the second night of clashes. Hundreds of people had returned to demonstrate in Beirut despite a fierce crackdown by security ...

Give Feedback