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Pound Rallies on Farage’s Election Concession Despite Weak GDP

November 11, 2019 at 17:14 by Simon Mugo

A heap of different GBP notesThe British pound today rallied against the US dollar after Nigel Farage confirmed his support for the Conservative Party raising hopes about Brexit. The GBP/USD currency pair rallied to new 4-day highs on the political headlines despite the release of multiple weak UK macro reports.

The GBP/USD currency pair today rallied from a low of 1.2786 in the Asian session to a high of 1.2897 in the mid-London session and was off these highs at the time of writing.

The currency pair gapped higher at the start of this week’s session then traded sideways heading into the London session. The country’s non-EU trade deficit increased to £4.032 billion from the previous £2.5 billion dragging the pair lower. The weak industrial production and manufacturing production reports released at the same time also contributed to the pair’s brief decline.

The pair exploded higher after Farage announced that his Brexit Party might not field candidates in areas dominated by the Tories. However, Farage criticised Boris Johnson‘s Brexit deal saying that it was not enough to deliver the long-awaited Brexit.  Pound dynamics drove the pair’s performance as US markets were closed in honour of Veterans Day.

The cable’s future performance is likely to be affected by tomorrow’s UK earnings report and political headlines.

The GBP/USD currency pair was trading at 1.2855 as at 17:13 GMT, having dropped from a high of 1.2786. The GP/JPY currency pair was trading at 140.21, having fallen from a high of 140.48.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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