GBP/EUR: Pound To Climb Higher vs. Euro On BoE's Super Thursday?
  • 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 also kept the Asset Purchase Facility steady at £895 billion.

The announcement was a non event with the focus firmly on Brexit developments.