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The Pound increases for the first time since July.

By September 13, 2019September 27th, 2022No Comments

On Thursday, the ECB (European Central Bank) removed an important interest rate and disclosed incentive measures to boost the Eurozone.

Director at Aberdeen Standard Investments, Richard Dunbar, stated that the most stimulating thing in the speech from Mario Draghi, was the remarks on “forward guidance”.

He mentioned that until inflation rises to around 2%, rates would remain steady.

Richard Dunbar also said that those “very unusual monetary policies” would remain for a long period of time.

The pound had increased this morning to $1.24 against the Dollar for the first time since July.

After a fall on Thursday, Euro is now up 0.17% against the Dollar.

World First, a currency dealer stated that “Dollar weakness has allowed currencies to strengthen this morning”

Senior Analyst, at ActivTrades, Ricardo Evangelista, said:

“Despite the announcement of a rate cut, the start of a new asset purchase program and fresh bank incentives, the markets appear, for now, unwilling to walk away from the single currency.”

“The European Central Bank sent out a clear message, that no effort will be spared to create more accommodating conditions for growth and to closer to the target inflation; this appears to have inspired confidence in investors, that better days lie ahead for the continent’s economy.”

“At the same time, positive signs coming from both Washington and Beijing have lightened up market sentiment, leading to greater risk appetite, which is beneficial for the Euro”.