The GBP/USD currency pair declined significantly today after the release of positive advance goods trade balance and consumer confidence data from the US docket. The currency pair was also affected by the weaker British pound as markets cautiously await the triggering of Article 50 by British PM, Theresa May.
The currency pair lost almost 100 points at the peak of its decline today as the greenback rallied higher and investors sold the British pound.
The greenback’s rally was largely triggered by the release of advance goods trade balance by the Census Bureau, which was recorded at deficit $64.8 billion, versus the expected $66.4 billion deficit. The release of the Conference Board‘s consumer confidence data, which stands at 125.6 beating the market expectation of 114.0 and the previous figure of 116.1 in February.
The currency pair’s performance was also affected by the uncertainty around the Brexit process in the UK as the UK Prime Minister, Theresa May, is set to trigger Article 50 tomorrow. There was also uncertainty on whether Scotland shall remain a part of the UK after Brexit given that Nicola Sturgeon is pushing for a second Scottish independence referendum.
The currency pair’s future performance is likely to be affected by the triggering of Article 50 by the UK PM, Theresa May, tomorrow.
The GBP/USD currency pair was trading at 1.2483 as at 17:24 GMT having declined from a high of 1.2594 earlier today. The EUR/GBP was trading at 0.8680 having risen from a low of 0.8614 earlier during today’s session. The GBP/JPY was trading at 138.17 having dropped from a high of 139.39.
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