- GBP/USD in green on hopes of last-minute Brexit deal.
- Vaccine and stimulus hopes undermine USD.
- Market participants ignore UK macro.
UK monthly unemployment claims rose to 64.3K in November; the setback was mostly offset by the unemployment rates at 4.9 Percent beating 5.1 Percent expected, from 4.8 Percent earlier.
The UK macro numbers did not influence the GBP/USD as the pair continued to hold on to its slight gains, trading near day’s high, around mid-1.3300s. GBP/USD had pulled back around 140 pips yesterday but traded in the green today as the hopes of a last-minute Brexit deal kept the bullish mood intact.
Brexit-deal hopes revived after – the UK and EU decided to extend the talks beyond the Sunday deadline; and, the statement from the EU’s chief Brexit negotiator, Michel Barnier on Monday that a deal could be reached if a solution to the fishing issue emerges.
The US dollar trades around two-and-half-year lows as the vaccine-related exuberance cut the greenback’s safe-haven appeal. The revived hopes surrounding the US fiscal stimulus also pulled down the currency. The weakness in the USD assisted GBP/USD in the intraday up-move.
The GBP bulls are restricted in their aggressiveness by the lockdown restrictions in London and the discovery of a new coronavirus-variant.
At the time of writing, one British Pound buys 1.3300 US dollars, down -0.10% as of 9:21 AM UTC.