Forex: GBP/USD higher in European trading
_iNVEZZ.com Friday July 19th:_ Sterling has remained stronger against the US dollar so far in European trading today, with the pair having so far risen to a two-day high at 1.5248.
The only significant UK data scheduled for today is Public Sector Net Borrowing for June, due out at 09:30 BST. Analysts’ expectations are for a drop to £9.450 billion from May’s £10.535 billion.
Today sees the start of a two-day meeting in Moscow of finance ministers and central bank governors of the Group of Twenty (G20) countries. The agenda is expected to include global employment, Japan’s endeavours to reverse deflation and the potential for cross-border trade wars.
The US Fed’s chairman Ben Bernanke stressed yesterday his agency’s stance that a reduction in bond-purchases would not necessarily mean that fiscal policy was being tightened. He told the Senate Banking Committee, “We have not changed policy. We are not tightening policy.” While the threat remained of stagflation and unacceptably high unemployment, said Bernanke, “we need to maintain a highly accommodative monetary policy … and that is what we intend to do.”
The dollar remained subdued after Bernanke’s words, with the GBP/USD rising to an intraday high at 1.5240.
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