* Chart: Global rates in 2020 http://tmsnrt. rs/2egbfVh
* Chart: Weighted pound sterling since the Brexit vote http://tmsnrt. rs/2hwV9Hv
By Joice Alves
LONDON, Aug. 2 (Reuters) – The pound rose against the dollar on Monday ahead of a Bank of England meeting at the end of the week as the global threat rises rather than optimism about the U. S. infrastructure bill.
The pound rose 0. 2% against the dollar at $1. 3928 at 08:30 GMT, after touching a five-week high at $1. 3983 on Friday, the last week opposite the dollar’s weakening since early May.
U. S. senators have laid out a big two-party $1 billion plan to invest in infrastructure, and some predict the space could pass the largest public works law in decades this week.
The prospects of approving the invoice in the U. S. U. S. They have backed riskier assets such as sterling and stocks, said Jeremy Stretch, G10 chief currency officer at CIBC Capital Markets.
“Sterling looks smart at the start of the week thanks to an improvement in the threat tone (. . . ), helped in component through optimism about the U. S. infrastructure bill,” he said.
A drop in COVID-19 instances and the reopening of the UK economy drove a rebound in the pound in July, and the currency returned from its biggest drop in months in June.
The Bank of England’s financial policy committee, which meets on Thursday, is expected to keep its foot firmly on the stimulus pedal, but a communication is being developed on the desire to start cutting its bond-buying program as the economy recovers.
“The prospect of continued consumer-led growth, coupled with a significant improvement in the CPI (inflation) profile, may inspire at least two of the MPC’s 8 voters to vote for bond purchases,” Stretch said.
Against the euro, sterling remained solid at 85. 32 pence (Report via Joice Alves, edited via Simon Cameron-Moore)
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