(Aug 24 Wednesday) The British pound rose 90 points to 1.3250 being well bid against the dollar and the euro in Europe as selling pressure pushed the EURGBP cross down from 0.8580 to 0.8510 in the morning session in London. The pound broke the three-week high of 1.3210 from last week from a combination of short-covering spree from long-term short positions and after recent data which indicated that the British economy was holding up surprisingly well after the July 23rd Brexit vote.
Yesterday, British manufacturing exports rose to a two-year high peak in August, while the July inflation and retail sales released last week were better-than-expected. Expectations of further easing from the Bank of England have also been slowly waning and the markets have only been pricing a 50 percent chance of a 15 basis point rate cut at the next meeting in November.
The next market focus will be the much awaited speech from Federal Reserve Chairwoman Janet Yellen on Friday this week at the Jackson Hole, Wyoming meeting. Investors and traders are awaiting clues as to the next interest rate hike will take place.