LONDON — The pound is little moved on Thursday as investors take a breather from a manic day for the currency on Wednesday when sterling slumped and jumped numerous times.
Sterling rode a rollercoaster on Wednesday, slumping during early morning trade to hit a new post-election low, before recovering ahead of the Queen’s Speech and then jumping after Bank of England Chief Economist Andy Haldane said that he is almost ready to back an interest rate hike, contradicting comments made by his boss, Governor Mark Carney, the previous day.
Consequently, the pound is treading water, down less than 0.1% as of 8.35 a.m. BST (3.35 a.m. ET) to trade at $US1.2660, as the chart below illustrates:
The pound could be shaken from its slumber later on Thursday with rumours circulating that Prime Minister Theresa May could be set to provide some clarity on the future status of EU citizens living in the UK as Brexit talks enter their fourth day.
Earlier reports had suggested that Britain is planning to make a “very generous” offer on post-Brexit rights for the three million EU citizens who live in the UK. Any such move would likely be seen by the markets as something of a softening of the government’s Brexit stance, and therefore a positive for the currency.