Sterling breaks $1.68
The pound has broken through the $1.68 mark ahead of Janet Yellen’s statement at 12pm (London time).
The GBP/USD is up 0.11% on the day as it claws back the losses it suffered after Mark Carney’s comments on Wednesday. The selloff was triggered after Mr Carney said interest rates would remain unchanged for ‘some time’. This took the wind out of the bull run the pound was on as it reached multi-year highs against the US dollar last week.
The UK economy is improving slowly and this was proven by the low unemployment rate. Traders’ expectations have been managed by the Bank of England and sterling continues to regain some of the lost ground.
Janet Yellen is due to address the US Chamber of Commerce at 12pm, and if Ms Yellen maintains her mildly dovish stance we could see the pound retake the $1.6860 mark. On the downside it would be unlikely to fall back to $1.6740.