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Pound Climbs On Fed Optimism
(RTTNews) - The pound advanced against its major counterparts in the European session on Monday, on optimism the Federal Reserve has finished raising interest rates.
Weak U.S. jobs and service sector activity data released on Friday reinforced expectations that the Fed may not hike interest rates any further. Futures markets currently imply an 86 percent chance the first policy easing would come as soon as June.
Markets also expect the European Central Bank to cut rates by April, and the Bank of England in August.
Oil prices rose as top exporters Saudi Arabia and Russia said they would continue with oil supply curbs of more than 1 million barrels a day through year-end.
The U.S. economic calendar is relatively quiet this week, with reports on initial jobless claims, the U.S. trade deficit and consumer sentiment along with remarks by Fed Chair Jerome Powell awaited.
The pound appreciated to near a 2-month high of 1.2426 against the greenback and more than a 4-week high of 1.1144 against the franc, off its early lows of 1.2362 and 1.1096, respectively. The pound is seen facing resistance around 1.27 against the greenback and 1.13 against the franc.
The pound moved up to more than a 2-month high of 185.91 against the yen and near a 3-week high of 0.8650 against the euro, from its previous lows of 184.67 and 0.8676, respectively. The pound is likely to face resistance around 188.00 against the yen and 0.84 against the euro.
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