The GBP/USD currency pair today tumbled to new session lows after the release of positive US housing starts data for November. The currency pair was on a downtrend for most of the European session given the empty UK economic docket.
The GBP/USD currency pair today declined by over 70 points from a daily high of 1.3403 to hit a low of 1.3330 after the US housing data release.
The British pound was on a downtrend against the US dollar from the early European session after the EU’s chief Brexit negotiator, Michel Barnier, stated that British banks would not be given a special deal to access the European single market. However, Theresa May‘s cabinet appears united in their efforts to get the best divorce deal for the UK. The pound’s weakness might persist up to the end of the year as most of the important economic news have already been released.
The release of the US housing starts data by the Census Bureau served to drive the currency pair lower. The housing starts came in at 1.297 million, which represented a 3.3% increase on a monthly basis as opposed to the expected 1.250 million units. The US current account deficit released by the Bureau of Economic Analysis was also lower than expected as it was recorded at $100.6 billion versus the expected $116.5 billion.
The currency pair’s future performance is likely to be affected by Mark Carney‘s speech before parliament tomorrow, and the passage of the tax reform bill in the USA.
The GBP/USD currency pair was trading at 1.3347 as at 16:52 GMT having declined from a high of 1.3403. The GBP/JPY currency pair was trading at 150.84 having rallied from a low of 150.37.
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