During the 18th week of 2019 the British pound (GBP) began to strengthen against the US dollar (USD) and alternately against the euro (EUR). However, this trend in the development of the GBP exchange rate against the EUR and USD did not hold. Nevertheless, during the European trading morning hours on May 2, 2019 the GBP/USD pair exchange rate was still above US$1.30 per GBP.
On Thursday morning May 2, 2019, at 8:02 CET, the GBP/USD currency pair traded on the foreign exchange market – Forex market at a rate of US$1.3045 per GBP with the daily weakening of the GBP by – 0.03% of the rate against the USD. At the same time, a few minutes before 8:00 AM CET the GBP/USD currency pair showed GBP appreciation by + 0.02% against the US dollar at value of US$1.3052 per GBP. According to analysts, GBP growth was caused by a partial weakening of investors’ interest in EUR and USD currencies during Wednesday’s business vacations in Europe due to Labor Day’s celebrations on May 1st.
On May 2, 2019 the European single currency (EUR), roughly at 8:09 CET, recorded stronger growth against GBP by + 0.09% at the exchange rate GBP 0.8586 per EUR. The analysts attributed this to the start of trading day on the European financial market, as well as to the continuing nervousness of investors in relation to Brexit. Last but not least, according to the economic rapporteurs, the British pound did not benefit either from the fact that Prime Minister May recalled her defense minister because of a serious leak of 5G information in connection with Huawei.
The US dollar exchange rate strengthening against other currencies, and in particular to the euro and the British pound, following a previous decline in the US dollar, is linked to the US Federal Reserve System (FED) boss Jerome Powell, who said at a press conference, that the recent low inflationary pressures may be only temporary and lively speculations that the central bank has considered the idea of lowering interest rates because of tame inflation, was not ruled out completely but currently it is not happening.
On the basis of these facts, the US dollar exchange rate measured by the US dollar currency index (DXY) during Thursday’s European morning on May 2, 2019 was 97.67 USD points with the current daily slight decline of – 0.02% of the previous point value. The global currency pair thus traded on May 2, 2019, at 8:25 CET, at a mutual exchange rate of US$1,1196 with EUR strengthening by + 0.02% against the USD.