TheÂ British pound today rallied slightly against theÂ US dollar following theÂ release ofÂ upbeat UK public sector finances report early inÂ theÂ European session. TheÂ GBP/USD currency pair was onÂ track toÂ reverse theÂ massive decline that occurred during theÂ last 5 trading sessions where theÂ pair lost over 450 points.
TheÂ GBP/USD currency pair today gained over 65 points toÂ rally from aÂ daily low ofÂ 1.3917 toÂ trade atÂ aÂ high ofÂ 1.3987 atÂ theÂ time ofÂ writing.
TheÂ pound’s rally was mainly triggered byÂ theÂ release ofÂ the provisional UK public sector finances for March byÂ theÂ Office forÂ National Statistics. Public sector net borrowing (excluding public sector banks) decreased byÂ Â£0.8 billion toÂ Â£1.3 billion inÂ March 2018, compared with March 2017, which was theÂ lowest March net borrowing since 2004. Public sector net debt (excluding both public sector banks andÂ theÂ Bank ofÂ England) was Â£1,590.1 billion atÂ theÂ end ofÂ March 2018, equivalent toÂ 76.3% ofÂ GDP, aÂ decrease ofÂ Â£17.9 billion onÂ March 2017.
TheÂ currency pair maintained its uptrend into theÂ American session despite theÂ release ofÂ positive US consumer confidence index report byÂ theÂ Conference Board. TheÂ pound’s steady rise could be attributed toÂ positive investor sentiment towards aÂ favorable outcome inÂ theÂ Brexit negotiations. TheÂ pound was able toÂ withstand theÂ consolidating US treasury yields that have boosted theÂ US dollar.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ investor sentiment towards both currencies given tomorrow’s empty UK economic docket.
TheÂ GBP/USD currency pair was trading atÂ 1.3980 asÂ atÂ 16:51 GMT having risen from aÂ daily low ofÂ 1.3917. TheÂ GBP/JPY currency pair was trading atÂ 152.11 having rallied from aÂ low ofÂ 151.39.
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