Fed signals rate cut and S&P 500 Jumps

Investors seem too afraid for a new round of investments on the British pound due to the fact that uncertainty over the Brexit still sparks fears of the U.K. dropping out of the European Union with no deal.

On Wednesday morning the GBP dropped to a fresh 6-month low versus the euro, with the dovish turn in BOE pressing the popular currency as well.

GBP dropped to $1.2475 versus the greenback on Wednesday, having broken under the important $1.25 level.

On Wednesday the greenback fell following the Federal Reserve Chairman's remarks that hit the market with a negative tone in a congressional statement by stating that trade risks and anxieties regarding the global forecast continue to exercise pressure on the U.S. economy.

In the planned notes to a congressional committee, the Federal Reserve Chairman stated that the Fed is willing to “act as appropriate” to provide a decade-long increase.

The greenback crashed to session lows against yen and the euro following Powell’s comments. That bolstered expectations that the Fed will decrease the interest rates for the first time in 10 years, at its following monetary policy gathering later this month.