The GBP/USD currency pair today maintained the gains made during the early European session despite the release of positive US GDP data mid-European session. The currency pair had rallied to a new yearly top during the early European section before dovish comments from Bank of England Chief Economist Andrew Haldane caused the cable to briefly decline.
The currency pair gained over 60 points at the height of its rally to hit a yearly top of 1.3007 after which it retraced some of its gains.
The release of Britain’s net consumer credit for May boosted the currency pair as it came in at $1.7 billion versus the expected $1.4 billion. The UK’s mortgage approvals for the month of May also exceeded expectations as they were recorded at 65,200 as compared to the expected 64,000. The positive UK data was slightly negated by Andy Haldane‘s comments as he said that the BoE was comfortable with the current rates and would remain vigilant over the future.
The release of the annualized US GDP report by the Bureau of Economic Analysis had minimal impact on the currency pair. The US continuing claims data released by the Department of Labor was disappointing as it was recorded at 1.948 million as compared to the expected 1.935 million. The US Dollar Index was also trading below its opening price of 96.04, which indicates overall greenback weakness.
The currency pair future performance is likely to be influenced by the release of the UK’s Gfk consumer confidence survey scheduled for 23:01 GMT today.
The GBP/USD was trading at 1.2984 as at 16:19 GMT having retraced some of its gains from a high of 1.3007. The GBP/JPY was trading at 145.87 having risen from a low of 145.24.
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