- UK PM May to sit down with opposition leader Corbyn.
- Markets ignore today’s mixed data from the U.S.
- US Dollar Index finds resistance near 97.50.
The GBP/USD pair changed its direction in the NA session and broke above the 1.31 mark as the latest political developments in the UK provided a boost to the British pound. As of writing, the pair was up 0.15% on the day at 1.3120.
Pressured by the fact that none of the Brexit alternatives reached a majority yesterday, the pair started the day under pressure on Tuesday. Furthermore, the data published by the IHS Markit showed that the business activity in the construction sector contracted for the second straight month in March and further weighed on the GBP. In the second half of the day, the broad USD strength kept the bearish pressure intact and dragged the pair close to the 1.30 handle.
However, British Prime Minister Theresa May announced that she will ask the EU for an extension of Article 50 to break the logjam in Parliament and said that she will meet opposition Labour Party leader Jeremy Corbyn with an aim to come up with a Brexit plan that the Labour Party will support. Responding to May’s call, Corbyn said that he is “very happy” to meet the PM to talk about Brexit.
Meanwhile, following an upsurge to its highest level in more than three weeks at 97.52, the US Dollar Index erased a large portion of its daily gains, suggesting that the greenback’s price action is mostly driven by the demand shifting away from and towards European currencies.
Technical levels
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