The Sterling pound today rallied higher against the US dollar following the release of a mostly positive UK labor market report in the early London session. The GBP/USD currency pair later retraced most of its gains as investors became worried about the Brexit process amid the UK political crisis.
The GBP/USD currency pair today rallied to a high of 1.3311 before dropping to a low of 1.3239 in the American session as the greenback rallied.
The currency pair traded in a tight range for most of the Asian session as investors remained unsure of whether to buy or sell the pair. The fact that a third meaningful Brexit vote has not been scheduled after John Bercow, the Speaker of the House of Commons, blocked a second vote on the current deal meant there were no major drivers for the pair. The release of the UK labour market report in the early London session by the Office for National Statistics provided some impetus to the currency pair. The unemployment rate fell to 3.9% versus the expected 4.0%, while the average weekly earnings came in at 3.4%, which was in-line with expectations.
The pair later headed lower as the uncertainty around Brexit intensified before recovering slightly in the American session. The pair was probably boosted by the weak US factory orders report released by the Census Bureau.
The currency pair’s future performance will likely be influenced by Brexit headlines, tomorrow’s UK CPI data, and FOMC rate decision.
The GBP/USD currency pair was trading at 1.3273 as at 16:39 GMT having dropped from a high of 1.3311. The GBP/JPY currency pair was trading at 147.84 having fallen from a high of 148.07.
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