GBP/USD Moves Beyond 1.2500 to Refresh 12-Day High Before Bank of England’s Bailey

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The pair stays stronger near a two weeks high, by elongating last week’s change in direction. This is coming at a time when British policymaker seems optimistic about subduing economic difficulty caused by inflation. Another factor keeping the GBP/USD traders optimistic is the USD weakness amidst a boring beginning of the week. The pair sold at 1.2545 mid-way into the Asian trading period today.

Both UK Prime Minister Boris Johnson and Huw Pill strived to comfort the GBP/USD traders by shaking off anxieties. These are the anxieties coming from the fact that policymakers are running out of ideas for combating the crisis coming from Brexit and the Russia-Ukraine war.

GBP/USD Moves Beyond 1.2500 to Refresh 12-Day High Before Bank of England’s Bailey

Additional Factors Relating to the GBP/USD Strength

Somewhere else, tangled worries about coronavirus situations in China, and reiterated Fedspeak backs the 50 basis points rate increase. And these appears to be the reason why the world market has combined losses recently. Subsequently, all of these have affected the demand for the USD as a safe-haven currency. The same has also pulled down the Dollar index (DXY) by 0.31 percent, bringing it to 102.70.

On the other hand, the EU’s displeasure about UK’s plan to change the Northern Ireland Protocol (NIP) has traveled far. This is considered so, following the caution that the US House Speaker gave, warning Britain of having no cross-Atlantic trade with the UK if the NIP is pushed away.

During these, the US Treasury yield grew by nearly 2.5 points to 2.81 percent. While the S&P 500 increased by nearly 1 percent and is now at 3,940.

Moving on, the BoE’s governor will be delivering a speech about “Monetary policy, policy interactions and inflation during an after pandemic world amidst geopolitical tensions” Therefore, chances are that the governor will track the latest clues from Pill & Johnson to keep GBP/USD stronger.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.