The British Pound rose against the Euro and remained buoyant near intraday highs against the US Dollar on Thursday after the European Central Bank cut its once-negative deposit rate, in line with economist and market expectations, and warned about the possible adverse effects of White House economic policy.
The Pound to Euro exchange rate rose from near 18-month lows as Sterling featured among the better performing advanced economy currencies in London trade on Thursday, and it could be likely to remain supported above 1.1611 through a looming interest rate decision from the European Central Bank.
The Pound to Euro exchange rate lost altitude in early trade on Wednesday as the US Dollar unravelled afresh in an apparent response to the latest in the US-China trade conflict, and a proposal in Washington for a tax on foreign holdings of American assets to be imposed on some jurisdictions.
Speculative traders should consider selling the Pound to Euro rate on rallies in anticipation of a renewed decline to 1.1409, according to the JPMorgan FX desk.