British Pound Tops 1.38 against USD, Trades at 34-month High

2 min read
11 Feb, 21
Written by Clover4X
Article Highlights:
  • GBP/USD peaks above 1.3850
  • Brexit talks expected later today

British Pound Tops 1.38 against USD

The GBP/USD pair is trading at a 34-month peak after the bulls keep their optimism in a streak of five consecutive days of gains. On Thursday, the pair seems to be taking a breather and trades near the recent tops, currently hovering around 1.3820 to 1.3850.

The recent rally is also aided by a weak US dollar as traders and investors anticipate progress over the new US fiscal stimulus proposed by the Biden administration. Adding to the downside pressure are rising fears of inflation. The UK currency stays firmly bid against other competitors, too. GBP/CHF and GBP/JPY also trade at multi-month highs, reaching pre-pandemic levels.

Anticipation for US Jobless Data

The GBP/USD pair has been in a solid uptrend for the past few months. More recently, traders supported the sterling as the UK showed significant progress with the vaccination program. According to the latest data, the UK has now vaccinated more than 13 million people, staying on track with its plan to administer the jab to 15 million people by February 15. In light of the developments, Prime Minister Boris Johnson praised the efforts yesterday by saying that the health authorities have made ‘great strides’.

Moreover, bringing in more volumes in the GBP/USD trades is today’s meeting between UK’s Gove and EU’s Sefcovic. They will also discuss the Northern Ireland Protocol and possible amendments to that part of the Brexit agreement. Cable traders will be monitoring the developments and the outcome could result in heightened volatility in the GBP/USD.

As the recent rally in the Cable is taking a pause, market participants await fresh news. Weekly US jobless claims are due out on Thursday. The figures will show whether there is a continued decline or if the US economy is getting back on track to bring back the jobs lost at the onset of the pandemic.

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