The Sterling pound today rallied higher against the US dollar following yesterday’s announcement by the chief Brexit negotiators to speed up the pace of negotiations. The GBP/USD currency pair was also boosted by the selling pressure around the US dollar following the political developments in two Federal investigations involving President Donald Trump‘s associates.
The GBP/USD currency pair today rallied from a low of 1.2868 to a high of 1.2931 and was in a downtrend at the time of writing.
The currency pair’s rally was boosted by comments from the EU’s Michel Barnier and the UK’s Dominic Raab who announced that they would have non-stop negotiations to arrive at a Brexit deal before the October European Union summit. Furthermore, two former Trump aides including his former personal lawyer Michael Cohen were found guilty in Federal investigations, which increased the likelihood of Trump also being found guilty. These political development increased the selling pressure on the US dollar, which favored the cable’s rally.
The currency pair experienced a slight pullback as bullish traders took some of their profits off the table given the pair’s 250 pips gain from 13-month lows hit last Wednesday. The pair lost some of its upward momentum as traders await further releases from the US docket before opening new trades.
The currency pair’s short-term performance is likely to be affected by the release of the Federal Open Market Committee minutes at 18:00 GMT today.
The GBP/USD currency pair was trading at 1.2922 as at 13:52 GMT having rallied from a low of 1.2868. The GBP/JPY currency pair was trading at 142.66 having risen from a low of 141.98.
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