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UK pound inches up
On Tuesday, the UK pound managed to leap notwithstanding fresh uncertainty over Brexit after the shocking resignations of David Davis as well as Boris Johnson because market participants waited for surge data, which could keep Britain’s key financial institution on track for an August rate lift.
The currency pair GBP/USD hit 1.3274 having reached an overnight minimum of 1.3224.
The major UK currency was still on the back foot after on Monday Boris Johnson resigned as UK foreign secretary, becoming the third minister to break up with the authorities in 24 hours, rather than support Prime Minister Theresa May’s plans for a soft Brexit.
Apparently, Johnson’s resignation spurred the likelihood that May could experience a vote of no confidence that could potentially throw her government’s future into doubt.
However, the British pound gained support in the face of reports that May could avert a leadership challenge, keeping alive expectations that a softer Brexit might be the reality.
The UK currency also rallied versus the euro. The currency pair EUR/GBP dived by 0.21% being worth 0.8843.
Market participants were looking ahead to monthly GDP data expected to demonstrate that the British economy keeps reviving from a steep deceleration at the start of 2018.
Firm surge data would spur the case for a rate lift by the Bank of England at its next gathering in August.
Great Britain was also expected to uncover its trade data in addition to figures on industrial as well as manufacturing output.
The evergreen buck was nearly intact, with the USD index, gauging the greenback’s purchasing potential versus six main currencies, hit 93.87.
The common currency stood still. The currency pair EUR/USD showed 1.1745 having ascended to a three week maximum of 1.1790 on Monday.
The evergreen buck soared versus the Japanese yen. The currency pair USD/JPY gained 0.23% coming up with 111.09.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!