Sterling Rallies Higher on Renewed Brexit Talks and Weak Dollar

The  Sterling pound today rallied higher against the  US dollar following yesterday’s announcement by  the  chief Brexit negotiators to speed up the  pace of  negotiations. The  GBP/USD currency pair was also boosted by  the  selling pressure around the  US dollar following the  political developments in two Federal investigations involving President Donald Trump‘s associates.
The  GBP/USD currency pair today rallied from a  low of  1.2868 to  a  high of  1.2931 and  was in  a  downtrend at  the  time of  writing.
The  currency pair’s rally was boosted by  comments from the  EU’s Michel Barnier and  the  UK’s Dominic Raab who announced that they would have non-stop negotiations to  arrive at  a  Brexit deal before the  October European Union summit. Furthermore, two former Trump aides including his former personal lawyer Michael Cohen were found guilty in  Federal investigations, which increased the  likelihood of  Trump also being found guilty. These political development increased the  selling pressure on  the  US dollar, which favored the  cable’s rally.
The  currency pair experienced a  slight pullback as  bullish traders took some of  their profits off the  table given the  pair’s 250 pips gain from 13-month lows hit last Wednesday. The  pair lost some of  its upward momentum as  traders await further releases from the  US docket before opening new trades.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  Federal Open Market Committee minutes at  18:00 GMT today.
The  GBP/USD currency pair was trading at  1.2922 as  at  13:52 GMT having rallied from a  low of  1.2868. The  GBP/JPY currency pair was trading at  142.66 having risen from a  low of  141.98.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.