British Pound Trades Sideways Near 6-Week Highs on Carney Speech

The  British pound today managed to  hold on  to  yesterday’s gains following the  disappointing US inflation figures that triggered its rally. The  GBP/USD currency pair today rallied slightly higher to  trade very close to  its 6-week high and  held on  to  its gains during the  BoE Governor Mark Carney‘s speech today.
The  GBP/USD currency pair today traded in  a  range between a  low of  1.3106 and  a  high of  1.3139 and  was trending lower at the time of writing.
The  currency pair today broke out of  its Asian session consolidative pattern in  the  early European session and  rallied higher due to  the  positive investor sentiment towards the  pound. The  pair later declined slightly but never crossed below the  crucial 1.3100 level, which it hit during yesterday’s rally. The  pair recovered slightly as  the  Bank of  England Governor was speaking in  Dublin where he reassured investors that the  bank was prepared to  deal with any Brexit outcome. He also stated that major UK banks would continue to  meet the  financial needs of  UK businesses and  consumers regardless of  the  Brexit outcome.
The  pair maintained its gains from the  weaker than expected US consumer inflation data released yesterday, which triggered a  rally in  the  greenback’s peers including the  pound. The  current optimism towards Brexit negotiations also boosted the  cable.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US advance retail sales data later today.
The  GBP/USD currency pair was trading at  1.3121 as  at  10:55 GMT having dropped from a  high of  1.3139. The  GBP/JPY currency pair was trading at  146.65 having declined from a  high of  147.02.

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