British Pound Declines on Brexit Cloud Amid Strong US ISM Data

Mar 06,2019 09:15   Source:Earnforex

Many 20-pound notesThe Sterling pound today fell against the US dollar despite the release of an upbeat fundamental print from the UK docket. The GBP/USD currency pair was weighed down by the looming Brexit deadline, which is just 24 days away with little sign of a deal being signed within the time left.

The GBP/USD currency pair today rose to a high of 1.3198 in the early European session before falling to a low of 1.3098 in the American session before rallying higher later.

The currency pair fell slightly in the Asian session before consolidating in a range then rallying to its daily highs in the early European session. The release of the upbeat Markit/CIPS UK services PMI in the early London session triggered the pair’s initial rally as the print came in at 51.3, which was higher than the expected 50.0 print, indicating positive services growth despite the Brexit uncertainty. This could be due to the recent agreements signed by UK regulators led by the Financial Conduct Authority (FCA) and the Bank of England (BoE) with the European Securities and Markets Authority (ESMA) to ensure continuity of the UK financial services sector in case of a no-deal Brexit.

The pair fell briefly after the release of the upbeat US ISM non-manufacturing PMI, before rallying higher for the last three hours having hit a crucial support level following BoE Governor, Mark Carney‘s speech.

The pair’s future performance is likely to be influenced by Brexit developments given the lack of major UK releases tomorrow.

The GBP/USD currency pair was trading at 1.3171 as at 18:59 GMT having recovered from a daily low of 1.3098. The GBP/JPY currency pair was trading at 147.31 having rallied from a low of 146.59.


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