The GBPUSD pair has opened strongly for the day as the impact from the escalation in the conflict in Syria has been much limited so far and this seems to be a huge relief for the markets at this point of time. That is probably one of the reasons why we have been seeing the pound make solid progress today.
GBPUSD Moves Higher
Also, the pound has been generally buoyed by the hawkish BOE which continues to paint a strong picture of the economy and how the smooth progress of the Brexit process has been helping the economy despite the fact that the incoming data from the UK has not supported this view so far. The pound has been enjoying some good times as the bulls continue to remain in control of the pair and the pair continues to trade comfortably above the 1.40 region. The pair is likely to face some resistance in the 1.43 region but this is something that was quite expected.
The dollar has been chopping around as the US has had to deal with a variety of issues including the war in Syria and the trade war with China. The country and the Trump administration has been quite busy in resetting a lot of things and its relations with a variety of countries have seen a sea change over the last year or so. This is likely to affect the dollar in the long term and that is why we are seeing that the impact of the Fed rate hikes have been quite limited so far.
Looking ahead to the rest of the day, we do not have any major economic data or news from the UK but we have the retail sales data from the US later in the day which is likely to gather the attention of the market now that the geopolitics are out of the way.
This article was originally posted on FX Empire
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