TheÂ British pound today rallied higher against theÂ US dollar inÂ theÂ early European session following hawkish comments byÂ theÂ Bank ofÂ England Governor Mark Carney. TheÂ pound later erased all its gains inÂ theÂ American session following aÂ news report that theÂ German government was unconvinced with theÂ UK’s latest post-Brexit Customs plan.
TheÂ GBP/USD currency pair today rallied toÂ aÂ high ofÂ 1.3275 shortly before tumbling toÂ aÂ low ofÂ 1.3206 after theÂ Brexit headlines.
TheÂ cable’s initial rally was mainly triggered byÂ Mark Carney’s hawkish comments where he stated that theÂ UK economy was evolving asÂ expected andÂ that theÂ BoE should start initiating tighter monetary policies. TheÂ pair rallied much higher inÂ theÂ early American session following theÂ release ofÂ weak US ADP employment report, which reported 177,000 new jobs versus theÂ expected 190,000 new jobs, weakening theÂ greenback. TheÂ pair headed lower after news reports emerged that German Chancellor Angela Merkel was not satisfied with Theresa May‘s post-Brexit Customs plan after aÂ meeting between theÂ two leaders.
TheÂ US dollar was later boosted byÂ theÂ release ofÂ theÂ US ISM Non-Manufacturing/Services PMI, which came inÂ atÂ 59.1 versus theÂ expected 58.3. TheÂ Markit US Services PMI also boosted theÂ US dollar asÂ it met expectations byÂ coming inÂ atÂ 58.3.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ release ofÂ US FOMC meeting minutes scheduled forÂ 18:00 GMT today.
TheÂ GBP/USD currency pair was trading atÂ 1.3220 asÂ atÂ 16:31 GMT having dropped from aÂ daily high ofÂ 1.3275. TheÂ GBP/JPY currency pair was trading atÂ 146.25 having declined from aÂ high ofÂ 146.86.
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