The British Pound rose from its lowest level since mid-December 2017 following positive retail sales data in Britain as concern over the impact of Brexit negotiations continued to push the Sterling further down.
GBPUSD rose after retreating from the important support level at 1.3305 to currently trade at 1.34 levels. UK retail sales rose by 1.6% in March, better than expected 0.7% gain.
The euro also rose from its 6-month low following China's signal of confidence in the single currency, but concern over the economic slowdown as well as Italy's political risks continued to put pressures on the euro to trade near its lows at 1.1713.
The euro is expected to fall for the sixth week in a row, the longest decline streak since January 2015. The Italian president has given Giuseppe Conte a mandate to lead Italy's first government made up of anti-establishment parties that have vowed to destabilize the EU.
The dollar lost some of its momentum after the US president threatened to impose new tariffs on imported cars, besides the minutes of the Fed meeting, which was cautious. Policy makers believe there will be another rise in interest according to market expectations, where the minutes showed that the Fed would tolerate inflation rising above its goal for a period of time.
