Sterling was also been provided with a leg-up by better-than-expected Halifax house price figures for May, which rose above forecast by 0.5 percent, while the annual figures also rose by 5.2 percent. The US dollar, meanwhile, has struggled to recover from yesterday’s poor economic data, which saw US trade balance figures for April decrease to $-50.8bn, while non-farm productivity figures for the first quarter also eased.
US-China trade aches are continuing to drag on risk sentiment, despite hopes that the two economic superpowers could reach a trade deal by the end of the year.
Isabelle Mateos y Lago, the Deputy Head of BlackRock’s Official Institutions Group, was sceptical, saying: “We do think a trade deal will happen, but let’s be very clear: Will it solve all the underlying tensions between the U.S. and China, in particularly the more strategic issues present in the tech sector? We don’t think so.”
Greenback traders are awaiting today’s release of the influential US non-farm payrolls figures for May, which are expected to ease.
These will be followed by the US average hourly earnings figures for May, which are, however, expected to improve.
The pound US dollar exchange rate will remain fixated on political developments, with Brexit and the future leadership of the Conservative Party proving to be a drag on Sterling.