- GBP/USD rallied for a fourth straight session on Thursday.
- Brexit trade deal optimism underpinned GBP.
- BoE monetary policy decision had little impact.
Pound pushed the GBP/USD pair beyond1.36to a 19 month high. Progress in Brexit talks and a weak tone surrounding the US dollar helped boost the pair higher.
The latest Brexit headlines revealed a trade deal between the EU and the United Kingdom could come by the end of the week.
Persistent USD weakness also added to the GBP/USD bull run story. The USD Index tanked to a multi year low on growing optimism for additional US fiscal stimulus. Republicans and Democrats in the US Congress could soon clear a $908 billion COVID-19 relief package.
Separately the rollout of covid vaccines is also boosting investors’ confidence undermining the USD’s safe-haven status. the Fed’s pledge to keep interest rates near zero for years.
GBP/USD saw a muted reaction to the latest BoE monetary policy decision. As expected, the BoE’s Monetary Policy Committee (MPC) left their interest rate unchanged at 0.10%.it also kept the Asset Purchase Facility steady at £895 billion.
The announcement was a non event with the focus firmly on Brexit developments.