British Pound Struggles as Markets Await May-Juncker Meeting

The  British pound today struggled to  find direction as  investors adopted a  wait and  see approach towards the  cable even as  Theresa May is set to  meet Jean-Claude Juncker later today. The  pound was relatively stable as  it appears that the  British Prime Minister has managed to  fend off a  leadership challenge within her own party from Brexiteer MPs.
The  GBP/USD currency pair today traded in  a  range marked by  a  high of  1.2820 and  a  low of  1.2773 and  was within this range at  the  time of  writing.
The  currency pair traded in  a  tight range at  the  start of  today’s session before rallying higher into the  late Asian session. The  pair maintained its gains in the  early European session backed by  positive investor sentiment as  European equity markets recovered. The  pair’s brief rally was not sustainable given that investors were still cautious following the  stalled leadership challenge on PM May led by  Jacob Rees-Mogg. Investors prefer to remain on  the  sidelines as  they wait for  the  outcome of  the  meeting between PM May and  European Commission President Jean-Claude Juncker.
The  release of  the  latest UK public sector finances report by  the  Office for  National Statistics had a  muted impact on  the  currency pair despite two of  the  prints being positive.
The  currency pair’s short-term performance is likely to  be affected by  Brexit headlines and  the  release of  the  latest US durable goods orders report later today.
The  GBP/USD currency pair was trading at  1.2809 as  at  11:52 GMT having risen from a  low of  1.2773. The  GBP/JPY currency pair was trading at  144.76 having rallied from a  low of  144.06.

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