Sterling spiked against all major currency pairs last night after UK Prime Minister Theresa May said she will look to extend Article 50 beyond the current deadline of April the 12th.
So far this morning the pair have traded almost as high as 1.32 at the highest stage, with sterling up against the majority of major currency pairs as the markets appear to have received the news well as has been the case with talk of a softer Brexit for over 2-years now.
May appears to be holding back on attempting another vote on her Brexit deal, and now she appears to be reaching out to her political opponents after announcing that she will have discussions with Labour leader Jeremy Corbyn in an attempt to find a joint plan. The rally in the pound’s value is likely due to the chances of a no-deal decreasing as Corbyn has previously outlined his plans for the UK to remain in the customs union.
Non-farm payrolls released on Friday
From the US side there could be a busy end to the week as Non-farm payrolls will be released on Friday afternoon, as is always the case on the first Friday of the month. At the same time, US jobs data will be released so we could see movement for USD exchange rates around this period and if you would like to be kept updated around this time do feel free to register your interest with me.
With the central bank of the US, the Fed Reserve are not outlining plans of rates hikes this year and some commentators suggesting the next move could actually be a cut, I think we could see the greenback soften throughout the year especially if there is a Brexit arrangement agreed during this time.
The ongoing saga of the US-China trade wars is also likely to impact the USD so again, readers should continue to monitor this matter.
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