The pound drifted higher against its key counterparts in the European session on Tuesday, after the Bank of England’s Chief Economist remarked that the latest economic data were “a shade better” than the scenario published by the central bank earlier this month and as the EU reportedly prepared to grant concessions to the UK on fisheries’ stance.
Speaking in an webinar organised by the Confederation of British Industry, BOE Chief Economist Andy Haldane said that the UK central bank has not reached remotely a view on taking interest rate negative so far.
The latest surveys suggest a modest recovery in consumer spending and business sentiment.
“This is perhaps still a V-recovery but a lopsided V and risks are of protracted recovery,” he added.
Media reports suggested that the European Union is willing to shift its demands on fisheries in negotiations with Britain next week.
The EU is prepared for a potential compromise on fisheries in talks next week, it said.
Prime minister Boris Johnson on Monday said that he will allow outdoor markets and car showrooms to reopen from June 1, if they put appropriate safety measures in place.
The restrictions on non-essential shops will be lifted from June 15, unless the outlook worsens on the spread of virus.
The pound appreciated to 2-week highs of 1.2351 against the greenback and 132.82 against the yen, after falling to 1.2177 and 131.18, respectively in early deals. The currency is likely to face resistance around 1.25 against the greenback and 135.00 against the yen.
The pound approached a 1-week high of 1.1933 against the franc and near a 2-week high of 0.8883 against the euro, compared to its early lows of 1.1829 and 0.8941, respectively. The currency is seen finding resistance around 1.21 against the franc and 0.86 against the euro.
The material has been provided by InstaForex Company – www.instaforex.com