Sterling continued its decline for the third day in a row to its lowest level since March 21 at 1.4034, as investors rebalanced their portfolios by the end of the first quarter of 2018, as well as the failure of the economic data today to support the currency, GBPUSD headed for the best quarter against the US dollar since 2015.
Positive developments in the Brexit negotiations process as well as increased expectations that the Bank of England will raise interest rates soon have helped to push the pound recently up to its highest level since Feb. 2 at 1.4243.
Sterling rose by 4% against the US dollar in Q1, its best performance since mid-2015, and rose by 1.4% against the euro and headed to its best performance since 2016.
The euro recovered slightly against the dollar in today's trading following a drop-in unemployment in Germany, Europe's largest economy, EURUSD rose from its lowest level since March 22 at 1.2294 to 1.2322 currently.
On the other hand, consumer spending rose in February, which accounts for more than two-thirds of US economic activity, by 0.2% on monthly basis and by 1.6% on yearly basis, according to forecasts.
The data did not provide sufficient support for the US Dollar, as the dollar index traded between 89.55 and 89.80.
