Pound Rises on Brexit Hope; U.S. Dollar Little Changed By Investing.com


© Reuters.

Investing.com – The British pound roses against the U.S. dollar on Friday in Asia after the European Union offered Brexit deal “hope.”

European Commission President Jean-Claude Juncker said he believes a Brexit deal could be passed before the deadline.

“I think we can have a deal,” Juncker said in an interview with Sky News. “I am doing everything to have a deal because I don’t like the idea of a no-deal because I think this would have catastrophic consequences for at least one year.”

The pound moved higher following his comments, as the GBP/USD pair gained 0.3% to 1.2550 by 11:37 PM ET (03:37 GMT).

Newly appointed Prime Minister Boris Johnson previously said he would deliver Brexit by the deadline even if it means not having a deal.

Meanwhile, the Bank of England kept interest rates unchanged on Thursday.

“It is possible that political events could lead to a further period of entrenched uncertainty about the nature of, and the transition to, the United Kingdom’s eventual future trading relationship with the European Union,” the bank said in a press release.

“The longer those uncertainties persist, particularly in an environment of weaker global growth, the more likely it is that demand growth will remain below potential, increasing excess supply.”

The U.S. dollar index was little changed at 97.835. This week, the Fed cut interest rates for a second time this year as expected.

Fed Chairman Jerome Powell described U.S. prospects as “favourable” and the rate move as “insurance.” He did not rule out future cuts, but his remarks were not as dovish as markets had hoped for.

The AUD/USD pair rose 0.1% to 0.6794, but the NZD/USD pair slipped 0.2% to 0.6289.

The USD/JPY pair was down 0.1% to 107.90.

The USD/CNY pair slipped 0.1% to 7.0866.

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