Pound Rallies Against Dollar Boosted by Upbeat UK GDP Data, Lower US Yields
The Sterling pound fell against the dollar fueled by the upbeat UK Q4 GDP data released in the early London market as the greenback remained largely weak. The GBP/USD currency pair also benefitted from the elevated investor risk appetite that drove riskier currencies and assets higher at the dollar’s expense.
The GBP/USD currency pair rallied from a low of 1.3716 in the late Asian market to a high of 1.3811 in the American session and was trading near these highs at the time of writing.
The currency pair’s initially fell driven by the weak market sentiment as investors waited for the UK data. The release of the upbeat UK Q4 GDP report triggered the pair’s rally. According to the Office for National Statistics, the country’s GDP grew 1.3% in Q1 compared to Q4, beating analysts’ estimates of 1% growth. The positive British total business investment data for Q4 also contributed to the pair’s rally. The upbeat UK Q4 current account balance also fueled the pound’s rally. The downbeat UK Nationwide housing prices index for March had a muted impact on the pair.
During the American session, the cable edge higher after the US ADP employment change report came in at 517,000 jobs missing consensus estimates of 550,000 jobs. The pullback in US 10-year Treasury yields also drove the pound higher. The upbeat ISM Chicago Business Barometer had a muted impact on the pair.
The currency pair’s future performance is likely to be affected by geopolitical events and US dollar dynamics, given tomorrow’s empty UK dockets.
The GBP/USD currency pair was trading at 1.3785 at 18:25 GMT after rallying from a low of 1.3716. The GBP/JPY currency pair was trading at 152.63, having risen from a low of 151.56.
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Original from: www.earnforex.com
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