Pulling back mildly against the US dollar in the overnight, the British pound rocketed higher during the session as traders look ahead to next week?s round of pertinent releases. The GBPUSD was able to break above the 2.0300 psychological level, from a session bottom of 2.0233.
Granted, the overwhelming boost was slightly on the result of GBPJPY cross action, as the pair jumped over 200 basis points on the day. However, with the cornucopia of reports slated for next week, the market could not dismiss the fact that bidders were out and about in hopes of gaining from supported carry expectations. As a result, momentum looks to continue throughout tomorrow?s session until the weekend close with both consumer prices and the central bank minutes on the mind of the market.
Written by Richard Lee, Currency Strategist and Terri Belkas, Currency Analyst of DailyFX.com