The pound today edged higher against the US dollar despite the UK’s latest GDP print missing expectations boosted by the positive investor sentiment. The GBP/USD currency pair was also lifted by news that the Rishi Sunak would announce a new jobs support programme later today fueling Britain’s economic recovery.
The GBP/USD currency pair today rallied from a low of 1.2921 in the mid-London session to a high of 1.2988 and was trading near these highs at the time of writing.
The currency pair fell shortly after the release of the downbeat UK GDP report for August. According to the Office for National Statistics, the country’s GDP grew 2.1% in August versus the consensus estimate of a 4.6% expansion. Britain’s trade deficit figures were mixed with the non-EU deficit being better than expected, while the overall figure missed expectations. Positive Brexit headlines kept the pound trading higher after David Frost; the lead UK negotiator and Michel Barnier, the lead EU negotiator, met for informal talks in London. Irish Minister Simon Coveney was quoted saying that the UK could get a limited trade deal from the EU avoiding tariffs and quotas.
The pair rallied higher during the American session given the mostly empty US docket as the US Dollar Index fell to a low of 93.14. The cable surged higher after Rishi Sunak unveiled another jobs support programme for UK workers.
The currency pair’s future performance is likely to be influenced by Brexit news and US dollar dynamics.
The GBP/USD currency pair was trading at 1.300 as at 15:27 GMT having rallied from a low of 1.2921. The GBP/JPY currency pair was trading at 137.40, having risen from a low of 136.80.
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