GBP/USD flirts with three-week high near 1.4000 as Scottish elections, Brexit test buyers
GBP/USD seesaws around the multi-day high near 1.4000, flashed on Friday, amid the early Friday morning in Asia. In doing so, the cable pays a little heed to the weekend news suggesting more challenges to UK PM Boris Johnson, due to Scottish election results as well as the recently agreed post-Brexit trade deals.
Scottish National Party (SNP) marked a historic fourth win Holyrood on Saturday and helped Scotland’s First Minister to tell UK Prime Minister (PM) Boris Johnson that the second independence referendum is “a matter of when not if”.
GBP/USD Forecast: Scottish election’s result may take its toll on pound
The British Pound took advantage of the broad dollar’s weakness, and GBP/USD surged to 1.4005, retreating just modestly ahead of the close to settle around 1.3990. By the end of the week, it was all about the poor outcome of the US employment report, which triggered a dollar’s sell-off in benefit of its high-yielding rivals. The market set aside the factors that lately limit the pound’s strength, which may return to take their toll at the weekly opening.