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Stellar Sterling Sees GBP/USD Hit New Highs

FOREX

GBP outperformed throughout the Wednesday session, prompting new cycle highs in GBP/USD at 1.3866, with the market further pricing out the prospects of negative rates and continuing to factor in the UK's vaccine rollout, which continues to immunise the population at a clip not matched in Europe or the US. Wednesday's move higher narrows the gap with the next resistance at the 1.3935 Apr 27, 2018 high.

The USD was more mixed, with the greenback edging lower in early European and US hours, before losses were somewhat pared ahead of the close. The USD index remains either side of the 50-dma at 90.459.

USD/JPY saw some support in the European morning on reports in Jiji newswires, which saw the BoJ mulling ways to signal their ability to cut interest rates deeper into negative territory. USD/JPY rallied in response, rising to touch Y104.84 before fading.

Focus Thursday turns to weekly US jobless claims data and the Banxico rate decision. ECB's Villeroy, de Guindos and Knot are all due to speak.

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