Great Britain Pound Demonstrates Strength amid Uncertain Fundamentals

The Great Britain pound was rather strong today, which is surprising considering all the uncertainty surrounding the Brexit, Britain’s economic health, and the Bank of England monetary policy.

Yesterday, BoE Deputy Governor Ben Broadbent said after his speech about “The history and future of QE” that he has not yet decided how to vote at the August policy meeting. That added to uncertainty surrounding the next month’s BoE policy decision. Previously, speculators were pricing in about 80% chance of a hike in August, but they have trimmed bets to 50% after last week’s worse-than-expected inflation data.

GBP/USD rose from 1.3098 to 1.3134 as of 11:00 GMT today, bouncing from the daily low of 1.3071. EUR/GBP slipped from 0.8923 to 0.8919, though bounced from the session minimum of 0.8908.

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