The pound fell against the US dollar on speculation that a Brexit agreement would be reached. The GBPUSD reached its highest level since February 27 yesterday at 1.3995 following the optimism of British finance minister Hammond, and dismissal of US secretary of State, also tensions between Russia & Britain has a role.
Markets are awaiting the BoE monetary policy meeting next week, as well as the EU summit, where Britain will announce an agreement on its relationship with the EU as soon as it leaves.
Also, the US dollar fell as trade tensions pushed the markets to rally towards the Japanese yen. Concerns remain in the markets as the protectionist policy of Trump administration increases, especially after the US president tries to impose tariffs on Chinese imports.
USDJPY declined for a second day, currently trading at 106, its lowest level since March 8.
