GBP/USD – Pound Pummeled on Broadbent Comments

Sterling has turned lower after a speech by Bank of England Deputy Governor Ben Broadbent.

GBP is down –0.21% at £1.2861

Of late, sterling had found support on rhetoric from Bank of England (BoE) policymakers have hinted at a possible rate rise.

Mr. Broadbent did not mention monetary policy in his speech to the Scottish Council for Development and Industry, in Aberdeen, but was cautious on Brexit’s impact on trade.

Mr. Broadbent said “a significant curtailment of trade with Europe would force the U.K to shift away from producing the things it’s been relatively good at.”

The market is paring back its bets on a rate hike actually happening at all this year

GBP/USD trades down -0.2% at £1.2855, down from £1.2917 before the speech. EUR/GBP is at €0.8865 vs. €0.8834 beforehand.

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell