One of the strongest-performing currency pairs has been the GBP/USD. It continues to keep a tentative grip above 1.3700 as we move into Thursday’s European trading session. This new record is particularly impressive as the duo approaches new multi-year highs. That’s symptomatic of an incredibly successful winning streak that has run for four straight sessions.
As of Thursday, GBP/USD was holding solidly above the 1.3700 level, benefiting from a broadly weaker US Dollar. Analysts are quick to point out that the pair’s strength comes from beyond just a perfect storm of market conditions. Recent political developments in the United States have cut deeply into this dynamic. According to numerous reports, former President Donald Trump repeatedly tried to put Federal Reserve Chair Jerome Powell out of a job. This action has raised fears over the future independence of the US central bank. In light of such uncertainties, the sustained weakness of the US Dollar has been a factor propping up the GBP/USD pair.
The GBP/USD simply refuses to give in as it turns back an impressive four-day winning streak. This increase is largely due to the general weakening of the USD. The US dollar / South African rand currency pair is trading near three-year highs. Even amid drastic shifts in economic circumstances, this proves its resilience.
“GBP/USD stays firm above 1.3700, near fresh multi-year highs” – FXStreet
This upward trajectory may reflect investor sentiment that favors the British Pound amidst the backdrop of ongoing geopolitical tensions and economic shifts. In particular, US President Trump’s recent criticisms aimed at the Federal Reserve’s credibility have further impacted market perceptions. Investors sure are responding to these recent developments. They are dumping currencies where volatility is expected, such as the British Pound.
Alongside GBP/USD’s recent performance, other major currency pairs are showing some major movements. For example, EUR/USD is pausing those gains around the 1.1700 area in advance of key US data later today. This trend indicates that traders are looking at high-frequency economic measures with the potential to shift currency valuations in the near future.