On Thursday, due to increasing signs that the Bank of England is planning to tighten monetary policy, the British pound rose above $1.30 for the first time in five-weeks. This is after losing approximately more than 2$ against the greenback when British Prime Minister, Theresa May, lost her parliamentary majority in the election on June 8.
In the early European trade, sterling reinforced its position to $1.2995 briefly rising as high as $1.3007 after Bank of England’s chief economist, Andy Haldane, told the BBC that the bank needed think seriously about raising rates. The Sterling was finally climbed by 0.4% towards $1.2984 – 0.1% higher at 87.90 pence per euro.
Oil futures went c a bit higher on Thursday. The United States crude futures CLc1 rose by 19 cents closing at $44.93 a barrel; this is after hitting a two-week high of $45.45 in late-morning trading. Brent crude futures LCOc1 ended up 11 cents higher at $47.42 a barrel, after touching a two-week high of $48.03 earlier in the season.ABN Amro’s senior energy economist, Hans van Cleef, said that those improvements were significant after the steep drop in prices lately. He noticed that lower United States crude production was the trigger to go long on the black gold. The rate of U.S. production will undoubtedly dictate prices in weeks to come while in the background there is the agreement signed by major oil producers to limit exports to battle over-supply.