The British pound today extended yesterday’s rally against the US dollar following President Trump’s criticism of the Fed’s interest rate hikes. The GBP/USD currency pair shrugged off concerns regarding the possibility of a no-deal Brexit even as the EU’s chief negotiator and the UK’s Brexit minister are set to meet later today.
The GBP/USD currency pair today rallied from an initial low of 1.2798 to a high of 1.2846 and was trading sideways at the time of writing.
The currency pair extended yesterday’s rally, which was triggered by President Donald Trump‘s criticism of the Federal Reserve‘s recent and future rate hikes. In his comments, the President stated that he expected Fed Chair Jerome Powell to be a ‘cheap money guy’ and expressed his frustrations with the Fed’s policies. The release of the UK public sector net borrowing for July by the Office for National Statistics had a muted impact on the currency pair. The public sector borrowing came in at £39.4 billion, which is the lowest level in 11 years.
The release of the UK’s CBI trends total orders later in the session had a slightly positive impact on the pair despite the print coming in at 7 versus the expected 8. However, the CBI trends selling prices came in at 15, which was higher than the expected 14.
The currency pair’s short-term performance is likely to be affected by the outcome of the meeting between the EU’s Michel Barnier and the UK’s Dominic Raab.
The GBP/USD currency pair was trading at 1.2825 as at 12:42 GMT having dropped from a high of 1.2846. The GBP/JPY currency pair was trading at 141.56 having risen from a low of 140.65.
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