- The pound clings to gains supported by Brexit expectation.
- The dollar remains under pressure in the market.
GBP / USD rallied slightly in recent minutes, following the Bank of England (BoE) decision and after jumping to 1.3622, the highest level since May 2018. The pound is among the ones that rose the most due to the expectation of a Brexit agreement.
The Bank of England, as expected, kept monetary policy unchanged: the interest rate continued at 0.10% and the total purchase program at £ 895 billion. The decision was unanimous and had no impact on the market.
The pair rises more than a hundred pips also supported by the weakness of the dollar and the appetite for risk. While stocks have not set new highs in the past hour, they are in positive territory. Part of the progress has to do with the possibility of an agreement in the short term for new fiscal stimuli in the US. DXY is at a two-year lows below 90.00.
In minutes, the weekly report of unemployment benefit requests, the housing start-up report and the manufacturing indicators of the regional Federal Reserve banks of Philadelphia and Kansas will be released in the US.
From a technical point of view, GBP / USD remains bullish, though momentum has been reduced after failing to extend the rally well above 1.3600. The drops at the moment look like fixes. Key support can be seen around 1.3500 – a reversal below would point to a possible short-term peak.
Technical levels
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