Pound Rallies to New Weekly Highs on Brexit Rumors and BoE Rate Decision

The  British pound today rallied to  new highs against the  US dollar following Brexit rumors that the  British PM Theresa May had signed a  deal with the  EU on  the  financial services sector. The  pound was further boosted by  the  Bank of  England‘s monetary policy decision, which helped it rally against the  greenback despite mixed US macro releases.
The  GBP/USD currency pair today rallied from an  opening low of  1.2764 to  a  high of  1.2954 backed by  the  mostly positive UK fundamentals.
The  cable opened today’s session with a  massive rally as  investors priced-in yesterday’s comments by  the  UK Brexit Minister Dominic Raab‘s advocating for  a  final Brexit deal by  November 21st. The  pair’s rally extended into the  early European session despite the  UK nationwide house price index missing expectations by  recording zero growth as  opposed to  the  expected 0.2% expansion. The  pair then retreated slightly before rallying higher after the  Bank of  England announced its monetary policy decision. The  BoE left its bank rate at  0.75% and  its asset purchase target at   £435 billion, which was expected. The  bank also released its November inflation report, which had no surprises.
The  BoE Governor Mark Carney‘s cautiously optimistic speech also boosted the  pound. Several US macro releases such as  the  weekly jobless claims data, and  the  ISM Manufacturing and  Employment PMI’s had a  muted impact on  the  currency pair.
The  currency pair’s future performance is likely to  be affected by  Brexit headlines and  tomorrow’s US non-farm payrolls data.
The  GBP/USD currency pair was trading at  1.2944 as  at  15:02 GMT having rallied from a  low of  1.2764. The  GBP/JPY currency pair was trading at  145.84 having risen from a  low of  144.01.

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