The British pound today performed better against most of its main competitors as markets await the vote by the House of Lords on triggering article 50. The British pound was one of the better performing currencies during the European session as the American market remained closed due to the celebration of Presidents’ Day in the USA.
The British pound had gained over 40 points against the US dollar in the GBP/USD currency pair, while the euro had lost about 30 points against the British pound in the EUR/GBP currency pair at the time of writing.
The British pound’s better performance was not based on any economic releases in the United Kingdom, but rather was triggered by the weakening of other currencies such as the US dollar and the euro. The pound’s performance was also affected by the markets’ expectation that the House of Lords would vote in favor of triggering article 50, which provides clear direction regarding Brexit.
The Sterling pound’s positive performance was also affected by the uncertainties in Europe, especially with regards to the Greek debt crisis and political uncertainties in countries such as France.
The release of the UK Gross Domestic Product figures for the fourth quarter of 2016 is likely to impact the pound’s performance positively as analysts expect the GDP figures to beat expectations.
The GBP/USD currency pair was trading at 1.2460 as at 17:38 GMT having retraced some of its gains having hit a daily high of 1.2483. The EUR/GBP currency pair was trading at 0.8520 having opened the day’s session trading at 0.8547.
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