TheÂ British pound today headed lower inÂ theÂ early European session following comments byÂ Donald Trump ahead ofÂ his meeting with theÂ British Prime Minister. However, theÂ pound staged aÂ recovery from theÂ early American session asÂ theÂ US dollar experienced aÂ modest retracement upon which theÂ pound capitalized.
TheÂ GBP/USD currency pair today declined declined toÂ aÂ daily low ofÂ 1.3125, but later rallied toÂ aÂ new high ofÂ 1.3221, andÂ was onÂ anÂ uptrend atÂ theÂ time ofÂ writing.
TheÂ currency pair’s initial decline could be attributed toÂ President Trump’s disapproving comments onÂ Theresa May‘s new ‘soft Brexit’ negotiating plan. According toÂ Trump, theÂ updated Brexit deal could endanger theÂ likelihood ofÂ aÂ US-UK trade deal after theÂ country officially leaves theÂ European Union, which increased theÂ selling pressure onÂ theÂ pound. TheÂ pound’s initial recovery was triggered byÂ hawkish comments from theÂ Bank ofÂ England Deputy Governor, Jon Cunliffe who stated that weak economic growth inÂ Q1 was largely due toÂ bad weather andÂ that theÂ UK’s growth plan remained intact.
TheÂ currency pair later rallied higher after theÂ release ofÂ weak US data such asÂ theÂ disappointing University ofÂ Michigan consumer sentiment survey, which missed expectations. TheÂ weak US import price index data also contributed toÂ theÂ greenback’s retracement asÂ tracked byÂ theÂ US Dollar Index.
Given theÂ upcoming weekend, theÂ currency pair’s future performance is likely toÂ be affected byÂ geopolitical events including Brexit headlines.
TheÂ GBP/USD currency pair was trading atÂ 1.3216 asÂ atÂ 16:49 GMT having recovered from aÂ daily low ofÂ 1.3125. TheÂ GBP/JPY currency pair was trading atÂ 148.63 having rallied from aÂ low ofÂ 147.63.
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