for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

Sterling hovers above $1.32 ahead of Jackson Hole

* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv

LONDON, Aug 27 (Reuters) - The pound hovered above the $1.32 mark ahead of the annual Jackson Hole central bankers’ conference starting later on Thursday, with traders on the lookout for policy hints that could move markets.

Sterling looked to have brushed off fresh industry data showing UK car production recovered in July but was still down 21% on the year, and the fastest cut in service sector jobs on record in the three months to August.

Traders are watching for any signs U.S. Federal Reserve Chairman Jerome Powell may tweak the central bank’s policy framework to help push up inflation, in his Jackson Hole speech later today. Such a move could allow rates to stay super-low for longer.

Bank of England governor Andrew Bailey is due to speak at the event on Friday, which is being held virtually due to the pandemic.

Sterling has been buoyed in recent weeks by a broadly weakening dollar, as risk sentiment recovered and investors piled back into currencies perceived as riskier bets.

The pound edged up nearly 0.1% against the dollar on Thursday, last at $1.3220.

Sterling shrugged off a further Brexit setback overnight after German Chancellor Angela Merkel, who holds the rotating presidency of the EU council, removed the subject from the agenda of a meeting of EU ambassadors next week due to a lack of progress in negotiations.

The pound was flat against the euro at 89.545 pence per euro , consolidating recent gains.

“The rise in GBP is yet another sign that the market is ignoring Brexit,” said Marshall Gittler, head of investment at BD Swiss, in a note.

“It’s been expected that German Chancellor Merkel could play a crucial role in breaking any deadlock, but it appears she’s giving up hope. GBP fell briefly on the news but it didn’t last long.” (Reporting by Iain Withers; Editing by Kim Coghill)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up