Friday, during the European stock market footstep trading session, the GBP/USD currency recycled distinctly defensive and threatening. It remained under the key 1.3250 barrier. That trend persisted despite a near-term tidal wave of re-invigorated US Dollar selling pressure. This pressure typically increases the value of the Pound Sterling.
On Thursday, the Bank of England (BoE) held a dovish line on any future interest rate decreases. Regardless of the outcome of the decision, the Pound Sterling just wasn’t able to find any major upward momentum. It limped along, fighting an uphill battle against competing economic signals. Analysts noted that the BoE’s reticence to provide a clearer outlook contributed to the Pound’s inability to rise above the 1.3250 mark.
In an interesting parallel, the US Dollar has peaked. Market participants are now looking ahead to the next round of United States and China trade talks set for this weekend. Traders expect that these talks could determine the future outlook of the global economy and as a result impact the strength of currencies.
Aside from the currency markets, Ripple’s cryptocurrency was most responsible for making headlines this past Friday. Price of XRP served as profit taking support near $2.31 but overall fell modestly on the day. Market analysts are convinced an XRP breakout past the psychologically-significant $3 level could be imminent. This optimism comes on the heels of a big $50 million settlement with the U.S. Securities and Exchange Commission (SEC).
Market onlookers will be watching the traditional currency space and the crypto market closely for more news on the matter. The GBP/USD pair’s performance will likely depend on upcoming economic data releases and geopolitical events, particularly in relation to US-China relations.