On Wednesday, the GBP/USD currency pair extended its rally for the third consecutive day, driven by the dollar’s overall vulnerability and positive UK macro reports.
On Wednesday, the GBP/USD currency pair progressed from a low of 1.2806 in the early London session to a high of 1.2942 in the American market. They were trading near these highs for most of the trading session.
The currency pair originally fell as investors reacted to Andrew Bailey’s statements that the Bank of England had not ordered out negative rates as a policy tool on Tuesday.
Although, the BoE’s chief economist, Andy Haldane, hit down Bailey’s remarks stating that none of the conditions for negative rates had been set. The release of the upbeat UK Q2 GDP report by the Office for National Statistics, which arrived in at -19.8% upon the predicted -20.4%, had the smallest influence on the pair. The active UK Nationwide housing prices reading for September also had a diminished effect on the pound.
The cable helped immensely from the dollar’s selloff
Accompanied by the US Dollar Index after President Donald Trump implied that the election results might be delayed.
There’s a hope that a Brexit deal might be reached following the most recent round of talks also raised the pair.
The currency pair’s supposed performance is likely to be affected by Brexit news and US dollar dynamics.
The GBP/USD currency pair was trading at 1.2912 was at 19:39 GMT, having improved from a low of 1.2806. The GBP/JPY currency pair was trading at 136.12, having risen from a low of 135.18.