Sterling Pound Rallies Against the Dollar, Later Gives Up Its Gains

The  Sterling pound today rallied higher against the  US dollar in  the  early London session driven by  the  upbeat investor risk appetite and  the  greenback’s weakness. However, the  GBP/USD currency pair could not hold on  to  its gains as  the  American markets opened and  headed lower as  investor sentiment shifted in  favour of  the  dollar.
The  GBP/USD currency pair today rallied from an  Asian session low of  1.3055 to  a  high of  1.3132 in  the  mid-London session before giving up most of  its gains by  the  time of  writing.
The  currency pair rallied higher today driven by  positive sentiment and  the  mixed UK labour market report for  July. According to  the  UK’s Office for  National Statistics, the  country’s unemployment rate fell to  3.9% versus the  consensus estimate of  4.2%. However, the  number of  jobless claims rose by  94,400 persons, which was much higher than the  10,000 claims predicted by  analysts. The  pair rallied despite concerns regarding the  UK-EU post-Brexit trade talks and  the  country’s faltering economic recovery.  
The  cable’s decline was fueled by  the  greenback’s resurgence as  tracked by  the  US Dollar Index, which hit a  high of  — today. The  dollar was supported by  the  upbeat US producer price index report for  July released by  the  Bureau of  Labor Statistics. However, the disappointing US NFIB business optimism index limited its gains.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple UK and  US releases.
The  GBP/USD currency pair was trading at  1.3088 as  at  17:51 GMT, having fallen from a  high of  1.3132. The  GBP/JPY currency pair was trading at  139.47, having risen from a  low of  138.58.
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