The GBP/USD currency pair today rallied to new highs above the 1.4100 level last witnessed before the historic Brexit vote. The pound rallied higher against the greenback buoyed by the positive UK labour market report released early in the European session.
The GBP/USD currency pair gained over 180 points to rally from a low of 1.4001 to a high of 1.4190 at the time of writing.
The British pound rallied higher in the early European session boosted by the positive investor sentiment towards the pound in anticipation of a favorable Brexit deal from the EU. The pair was boosted by the positive labor market report released by the Office for National Statistics. The report indicated that average weekly earnings in November grew by 2.5% on an annualized basis, which was in line with expectations. The ILO unemployment rate also met expectations by coming in at 4.3% in November. The employment change increased by 102,000, which was higher than the expected 12,000 decline.
The massive sell-off in the US dollar also contributed to the pair’s rally as the US Dollar Index hit a low of 89.46 earlier today. The US Treasury secretary Steven Mnuchin‘s statement at the World Economic Forum earlier today that a weaker US dollar was good for the USA also contributed to the greenback’s sell-off.
The currency pair’s future performance is likely to be affected by the release of the Markit flash services, manufacturing and composite PMIs as well as existing home sales data scheduled for later today.
The GBP/USD currency pair was trading at 1.4176 as at 13:50 GMT having rallied from a daily low of 1.4001. the GBP/JPY currency pair was trading at 155.23 having rallied from a low of 154.11.
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