The Sterling pound today traded mostly sideways against the US dollar as it solidified gains made from yesterday’s 10-week lows as the Brexit impasse continued. The GBP/USD currency pair dropped lower following the release of US Q1 GDP data before quickly reversing the losses and printing new daily highs driven by positive investor sentiment.
The GBP/USD currency pair today rallied from a session low of 1.2874 after the GDP release to a high of 1.2936 and was headed higher at the time of writing.
The currency pair today traded with a slightly bullish bias in the Asian session as investor risk appetite remained quite healthy. The bullish bias extended into the early London session as it emerged that Theresa May‘s government was still in negotiations with the opposition Labour Party led by Jeremy Corbyn. Although there were no major breakthroughs in the talks, investors were pleased that the Prime Minister was not about to be ousted by her Conservative Party. However, it appears quite likely that the UK shall participate in the European Parliament elections slated for late May.
The release of the US Q1 GDP data by the Bureau of Economic Analysis in the early American session drove the pair to new daily lows. However, the cable quickly rebounded as markets digested the weak US personal consumption data released concurrently.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events related to trade and Brexit.
The GBP/USD currency pair was trading at 1.2938 as at 14:50 GMT having risen from a low of 1.2874. The GBP/JPY currency pair was trading at 144.30 having rallied from a low of 143.74.
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