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GBP/USD Narrows Gap With $1.40

FOREX

GBP/USD traded particularly well Thursday, with the pair hitting new cycle highs and narrowing the gap with the $1.40 handle - a level not topped since early 2018 and major psychological resistance. Continued strength in the UK vaccine rollout twinned with further pricing out of negative interest rates remain the key drivers, with EUR/GBP also looking unapologetically bearish.

The USD lagged, recoupling with equity markets which traded in the red across both the continent and the US. The gravitational pull of the 50-dma in the USD index continues to draw influence at 90.421, with the 90.05 support seen as key.

Elsewhere, commodity-tied currencies trade softer alongside a modest pullback in WTI and Brent crude futures prices. CAD was one of the poorest performers Thursday.

Focus Friday turns to UK and Canadian retail sales as well as prelim manufacturing and services PMIs globally.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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