The GBP/USD currency pair is headed to close the markets much lower than its opening price after the British pound lost significant ground against the US dollar throughout the day. The GBP/USD currency pair has retraced much of the gains it had made earlier in the week, ahead of the first meeting between British PM, Theresa May, and US President, Donald Trump.
The GBP/USD currency pair closes the week on a high having gained close to 150 points since the beginning of the week. However, the British pound has lost significant ground against the greenback as the cable has lost over 100 points over the last two days.
The sterling pound has lost momentum since the UK government published its Brexit bill yesterday. The pound could also be weakening based on lower investor confidence in the currency as UK GDP data released yesterday by the Office of National Statistics indicated that the service sector was the best performing sector.
The currency pair is also being affected by market expectations of higher inflation figures triggered by imported price pressures due to the weakening of the pound post-Brexit.
The currency pair is likely to be affected by the joint press conference to be held by Donald Trump and Theresa May after their first meeting today. The meeting is scheduled for 18:00 GMT.
The GBP/USD currency pair was trading at 1.2532 as at 17:27 GMT having opened the day’s session trading at 1.2595. The EUR/GBP currency pair was trading at 0.8524 having opened the day at 0.8480.
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