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GBP/USD Strikes Two-Week High as Brexit Sentiment Improves

Last week’s high: $1.3097

Last week’s low: $1.2907

 

Pound Cheers Cross-Party Brexit Progress

The Pound US Dollar exchange rate enjoyed a solid start to last week’s session, surging higher on the back of renewed Brexit optimism following reports of progress in cross-party talks.

However GBP/USD peaked in the mid-week as the US Dollar bounced back after the Federal Reserve dispelled concerns it could cut interest rates this year as it reaffirmed its commitment to patience.

In contrast the Pound was left wanting on Thursday after the Bank of England’s own policy decision, despite warning rate hikes will rise more ‘frequently’ than markets expect,

Closing the week were the US payroll figures, with the US Dollar able to pare some more of its losses after payrolls beats forecasts in April.

 

USD Outlook: Potential Brexit Deal and Upbeat GDP Figures to Boost Sterling?

Looking to the week ahead, Brexit may be the spotlight once again as Theresa May seeks to wrap up the cross-party talks, with the Pound likely to jump if the two sides are able to reach an agreement.

Also in focus for GBP investors will be the publication of the UK’s GDP figures at the very tail end of the week, with Sterling set to surge if growth rose in line with expectations in the first quarter.

Meanwhile movement in the US Dollar may also be focused at the end of the week, with a rebound in domestic inflation likely to boost USD exchange rates.

 

Key Events

7th May

15:00 US JOLTs Job Openings (Mar)

8th May

09:30 UK Halifax House Price Index (Apr)

9th May

13:30 US Trade Balance (Mar)

10th May

09:30 UK GDP (Q1)

09:30 UK Trade Balance (Mar)

09:30 UK Industrial Production (Mar)

09:30 UK Business Investment (Q1)

13:30 US Inflation Rate (Apr)

 

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To keep up to date with the US Dollar, visit the USD blog in our Currency News section.

 

Alastair Archbold

Foreign Exchange Manager

aja@fcgworld.co.uk

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