The GBP/USD currency pair rallied higher today as markets anticipate the triggering of Article 50 on Wednesday by the UK Prime Minister, Theresa May. The British pound rallied higher boosted by the positive economic data released recently in the UK, while markets ignored the uncertainty associated with the official Brexit process.
The currency gained close to 100 pips at the height of its rally boosted by the stronger British pound and the weaker US dollar.
The currency pair rallied boosted by last week’s positive UK economic data as well as the steps taken by PM May to ensure that Scotland remains in the UK after Brexit by meeting with Nicola Sturgeon. Given the lack of economic data from both the UK and the US today, the currency pair’s rally was largely due to positive market sentiment towards the British pound.
The pair’s rally was also driven by the weaker US dollar as tracked by the US Dollar Index, which was trading in the 99.00s for most of the day, and hit a daily low of 98.86. The greenback’s performance was largely affected by President Donald Trump‘s failure to pass his healthcare bill on Friday.
The currency pair’s future performance is likely to be affected by the US advanced goods trade balance for February and the US consumer confidence for March, both scheduled for release tomorrow.
The GBP/USD pair was trading at 1.2562 as at 17:03 GMT having retraced some of its daily gains. The GBP/JPY was trading at 138.98 having opened the day’s session trading at 138.09.
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