Greenback awaits jobs data, pound nurses losses after BoE
On Friday, the greenback held steady with its near-term fortunes riding on whether American jobs data will manage to rekindle hopes for the Fed to lift interest rates this year.
Meanwhile, the British pound had nothing to do, but to lick its wounds a day after the UK’s major financial institution not only dropped interest rates, but also dared to restart its bond purchase program to shore up the British economy.
With the BoE’s verdict now out of the way, the financial markets’ focus is currently shifting to the American jobs report.
An upbeat reading there could back the greenback by simply reviving expectations that the Fed could increase interest rates by year-end. The given scenario had been discarded in the days followed the shocks from Brexit in June.
Though surprisingly tepid American second-quarter GDP growth figures issued last Friday have weighed on the greenback, the major American currency has recovered slowly.