The pairing edged higher following this morning’s publication of the UK Rightmove House Price Index figures for April, which rose by 1.1 per cent. Miles Shipside, a Director at Rightmove, said: “The rise in new seller asking prices reflects growing activity as the market builds momentum, egged on by the arrival of Easter… “They may have already delayed for a year or two waiting for Brexit clarity, and understandably their patience is wearing thin.” Meanwhile influential Brexit developments have tailed off as MPs take a break over the Easter parliamentary recess.
Nevertheless, cross-party talks are set to continue over the period, with both parties attempting to break the political deadlock.
Theresa May’s de facto deputy, David Lidington, gave mixed signals about ongoing cross-party talks in a recent interview.
He said: “What we have found in terms of objectives… there is a fair bit that both parties would have in common.”
Mr Lidington added a note of caution, however, saying that the questions lingering over Brexit should not be “allowed to drag out for much longer”.
The US dollar has weakened against the pound as traders flee to riskier currencies on hopes that the US-China trade talks will reach a conclusion this week.
Steven Mnuchin, the US Treasury Secretary, had the effect of boosting risk appetite.
He said: “[W]e’re hopefully getting very close to the final round of these issues…
“There are certain commitments that the United States is making in this agreement, and there are certain commitments that China is making.”
These came after cautionary comments from Jamie Dimon, the CEO of JPMorgan, last week in which he emphasised that the US economy is becoming increasingly impacted by housing shortages and easing construction activity.
The pound US dollar exchange rate will remain sensitive to Brexit developments today with no notable UK – or US – economic data due to be released until tomorrow.
If cross-party talks show any signs of progress, however, this could give the pound US dollar exchange rate a boost.