The British pound jumped more than half a cent on Thursday to nearly a one-month high after German Chancellor Angela Merkel said a solution to the Irish border issue could be found before the Oct. 31 deadline for Britain to leave the European Union.
The dollar slipped on Thursday, but moved within narrow ranges, as investors awaited a possible announcement or statement from the Federal Reserve at this week's Jackson Hole, Wyoming event to address the worsening global economic outlook.
The pound was on course for its best day in months on Thursday after traders interpreted comments from German Chancellor Angela Merkel to mean that a solution to the Irish border problem could be found before Britain leaves the European Union on Oct. 31.
The dollar advanced against the safe-haven yen and Swiss Franc on Wednesday, as risk appetite increased with global stocks and U.S. yields were mostly higher ahead of an annual Federal Reserve gathering later this week in Jackson Hole, Wyoming and a summit of major central banks this weekend.
Sterling briefly jumped on Tuesday after German chancellor Angela Merkel said the European Union would think about practical solutions to the backstop, an agreed insurance policy for the Irish border that London wants scrapped.
Sterling briefly rebounded from near three-year lows versus the euro on Tuesday after German Chancellor Angela Merkel said the European Union would think about practical solutions regarding the post-Brexit Irish border.
The dollar declined on Tuesday, in line with the drop in Treasury yields, as investors braced for a potentially dovish Federal Reserve at a Jackson Hole, Wyoming, gathering later this week, with many expecting an announcement of some measure that would ease U.S. recession concerns.
The safe-haven yen and Swiss franc retreated against the dollar on Monday, as risk sentiment improved after a week of turmoil on hopes major central banks would launch fresh stimulus measures to lift their sluggish economies.
Sterling edged lower on Monday, although sentiment towards the pound was better than in recent sessions as investors hoped Britain and the European Union could make some progress in Brexit talks.
Speculators cut their bullish bets on the U.S. dollar in the latest week, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday.
| FTSE 100 » | 7,128.18 | -1.05% |
| Euro Stox » | 1,471.62 | -0.48% |
| S&P » | 2,922.95 | -0.05% |
| Nikkei 225 » | 20,628.01 | +0.05% |
| GB 10YR |
+0.519
|
+0.001 |
| DE 10YR |
-0.641
|
+0.000 |
| JP 10YR |
-0.240
|
+0.003 |
| GBP / USD » | 1.2250 | +1.02% |
| EUR / GBP » | 0.9041 | -1.06% |
| GBP / JPY » | 130.3600 | +0.83% |
Bezos, Gates and Buffett are still on top on the annual Forbes Billionaires list. But a 'real animosity' is growing against the billionaire class in the United States, Forbes Assistant Managing Editor, Luisa Kroll, tells Reuters. For the full list: www.forbes.com/billionaires. ROUGH CUT. (No reporter narration.)