The British pound today struggled to find direction as investors adopted a wait and see approach towards the cable even as Theresa May is set to meet Jean-Claude Juncker later today. The pound was relatively stable as it appears that the British Prime Minister has managed to fend off a leadership challenge within her own party from Brexiteer MPs.
The GBP/USD currency pair today traded in a range marked by a high of 1.2820 and a low of 1.2773 and was within this range at the time of writing.
The currency pair traded in a tight range at the start of today’s session before rallying higher into the late Asian session. The pair maintained its gains in the early European session backed by positive investor sentiment as European equity markets recovered. The pair’s brief rally was not sustainable given that investors were still cautious following the stalled leadership challenge on PM May led by Jacob Rees-Mogg. Investors prefer to remain on the sidelines as they wait for the outcome of the meeting between PM May and European Commission President Jean-Claude Juncker.
The release of the latest UK public sector finances report by the Office for National Statistics had a muted impact on the currency pair despite two of the prints being positive.
The currency pair’s short-term performance is likely to be affected by Brexit headlines and the release of the latest US durable goods orders report later today.
The GBP/USD currency pair was trading at 1.2809 as at 11:52 GMT having risen from a low of 1.2773. The GBP/JPY currency pair was trading at 144.76 having rallied from a low of 144.06.
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