British Pound Boosted by Brexit Optimism

Forex News

The US dollar has stopped its growth after President Donald Trump once again criticized monetary policy of Fed. Trump said, that he did not like the decision of the Federal Reserve to continue raising interest rates. The Fed last raised interest rates in September and left intact its plans to gradually tighten monetary policy.

Some traders said comments on Tuesday by US President Donald Trump helped cool Treasuries yields. US 5-year yield closed down 0.016 at 3.057, 10-year yield fell 0.025 to 3.208, 30 year yield dropped 0.035 to 3.368.

The British pound took some comfort on hopes Britain and the European Union might be close to a Brexit deal. The GBP/USD pair is trading at 1.3171 up 0.62% on the day. It was reported, that “meaningful progress” has been made between Theresa May’s chief negotiator Olly Robbins and EU Brexit negotiator Michel Barnier. It is expected, that an agreement on the future trade relationship could be done by November, while the divorce terms could be out next Monday.

UK will release Industrial and Manufacturing Production data for August and the GDP estimate and trade balance for the same month. UK’s GDP data is forecast to be at 0.1% a slight contraction from the previous month’s 0.3%. Industrial production is seen rising 1.0% yoy in August following a 0.9% advance in July. The trade deficit is expected to widen to GBP 10.9 billion from GBP 9.97 billion.