The Sterling pound today attempted to rally against the US dollar, but the rally was shortlived as the greenback reversed course and drove the pound lower. The GBP/USD currency pair today rallied to its daily highs before heading lower as investor appetite for the pound waned amid a rejuvenated dollar.
The GBP/USD currency pair today rallied to a high of 1.3070 in the early London session before falling to a low of 1.2956 in the American session but had recovered some of its losses at the time of writing.
The currency pair remained on the back foot today as the EU and the UK maintained their tough negotiating positions as Brexit talks kick-off. The lack of significant economic releases from the UK docket meant that the cable’s performance was heavily influenced by the greenback as tracked by the Dollar Index. The release of the upbeat Markit/CIPS UK Services PMI, which came in at 53.9 beating consensus estimates set at 52.9, pushed the pair to its daily highs. However, the pair fell shortly afterwards as the greenback embarked on a major rally pushing the US Dollar Index to a high of 98.32.
The cable hit its daily lows in the early American session following the release of upbeat US ISM Non-Manufacturing PMI for January, which came in at 55.5 versus estimates set at 55.0. The positive Markit US Services PMI print, which was recorded at 53.4 beating expectations by 0.2, also contributed to the pair’s woes.
The currency pair’s future performance is likely to be affected by geopolitical events, including Brexit headlines.
The GBP/USD currency pair was trading at 1.2989 as at 19:46 GMT having fallen from a high of 1.3070. The GBP/JPY currency pair was trading at 142.65 having dropped from a high of 143.39.
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