Pound US Dollar Exchange Rate Firms as Andrew Bailey Appointed New BoE Governor

GBP/USD Exchange Rate Buoyed in Early Trade

The Pound Sterling to US Dollar (GBP/USD) exchange rate opens this morning’s session on the front foot, as Andrew Bailey was confirmed as the next governor of the Bank of England (BoE).

At the time of writing the GBP/USD exchange rate is trading at around $1.3043, ticking up from the two-week low struck overnight on Thursday.

Pound (GBP) Strengthens on BoEs Announcement, Upbeat GDP Figures

The Pound (GBP) is ticking higher against the US Dollar (USD) and the majority of its other peers this morning as markets welcomed the announcement of Andrew Bailey as the next Governor of the Bank of England.

Bailey who is currently, chief executive of the Financial Conduct Authority (FCA) previously served at the bank for over 30 years as was seen as playing a key role in the bank bailouts during the 2008 financial crisis.

As such he is seen as a safe pair of hands by markets, helping to buoy the appeal of Sterling this morning.

Responding to the announcement, Bailey, said:

‘It is a tremendous honour to be chosen as governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union.

‘The Bank has a very important job and, as governor, I will continue the work that Mark Carney has done to ensure that it has the public interest at the heart of everything it does.

‘It is important to me that the Bank continues to work for the public by maintaining monetary and financial stability and ensuring that financial institutions are safe and sound.’

Further buoying the Pound this morning was the final release of the UK’s third quarter GDP figures, as the Office for National Statistics (ONS) revised domestic growth up from 0.3% to 0.4%.

US Dollar (USD) Flat as Markets Await US GDP Figures

At the same time, the US Dollar (USD) is trading in a narrow range this morning as the US also prepares to publish its latest GDP figures.

The final reading for the third quarter is expected to confirm that US economic growth accelerated from 2% to 2.1% between June and September.

USD investors will also be hoping for some more details on a phase one trade deal between the US and China after Treasury Secretary Steven Mnuchin claimed the text is finished and just undergoing a final ‘scrub’.

GBP/USD Exchange Rate Forecast: Brexit Bill Faces Parliamentary Vote

Still to come to today we have a parliamentary vote on Boris Johnson’s Brexit deal.

The EU Withdrawal bill is expected to easily make it through the House of Commons after Johnson secured an 80-seat majority in last week’s

Matthew Andrews

Contact Matthew Andrews