British Pound Rallies Against US Dollar on Weak US Data

The British pound today rallied to new highs against the US dollar after the release of disappointing US durable goods orders. The pound had hit daily lows after the Chancellor of the Exchequer, Philip Hammond released the government’s Autumn Budget 2017.

The GBP/USD currency pair gained over 60 points from its daily low hit after the release of Autumn budget, to trade at daily highs above 1.3270 boosted by the release of the weak US macro data.

The currency pair opened today’s session trading in a tight range following positive updates regarding the Brexit talks. The pound was largely boosted by reports that the UK and EU are  likely to agree on a divorce bill in the next three weeks. The currency pair plunged to new lows after the Chancellor announced a softer growth forecasts for the UK’s economic growth up to 2019, which were passed on from the Office for Budget Responsibility.

The release of the US durable goods orders report for October by the Census Bureau contributed significantly to the currency pair’s latest rally. Durable goods orders contracted by 1.2% on a monthly basis in October as opposed to the market consensus of a 0.3% expansion over the same period. The lower-than-expected initial jobless claims data released by the Department of Labor could not lift the greenback.

The currency pair’s short-term performance is likely to be affected by the release of the minutes of the FOMC November meeting.

The GBP/USD currency pair was trading at 1.3266 as at 15:18 GMT having rallied from a low of 1.3212 earlier today. The GBP/JPY currency pair was trading at 148.17 having declined from a daily high of 148.88.

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