The British pound extended its advance against the U.S. dollar and euro on Friday, trading near record highs, as the ebbing geopolitical fears weighed on the market sentiment.
The GBPUSD pair traded higher at 1.4295, the highest level since January 25, set for a 1.45%-weekly gain this week.
Against the euro, the pound’s strength continued to drag down the EURGBP pair to a low of 0.8628, the lowest level for the pair since May 2017.
In fact, the pound’s recent rally could be largely attributed to the weakness in the U.S. dollar and the euro, in addition to easing Brexit concerns and rising bets of an interest rate hike by the Bank of England in May.
The green currency has been under pressure due to trade war concerns and threats of the spark of a military war between the U.S. and Russia in Syria.
The euro, on the other hand, retreated on Thursday after ECB minutes for March policy meeting warned of the shared currency’s appreciation and trade war concerns.
The pound has took advantage of the easing Brexit concerns after the latest round of negotiations with the EU have showed some upbeat signs that both parties would reach a compromise.
Expectations also mounted that the BOE would raise interest rates by a 25 basis points to 0.75 percent next month, as U.K. CPI retreated from 3.0 percent to 2.7 percent.
President Donald Trump dialed down strikes on Syria yesterday, thereby
easing concerns in markets and giving some relief to shares at the expense of