The British pound rose against the United States dollar on Wednesday, lifted by investors who are now anticipating the latest progress of the Brexit negotiations. The pound was seen settling at $1.38, which is near the currency’s highest point ($1.3836) since mid-2016. It also gained strength versus the euro, trading at 88.56 pence – 0.3% higher compared to their previous settlement.
Lukman Otunuga, FXTM research analyst, remarked that while the Sterling could rally higher in the near term and even reach $1.40, investors had to keep in mind that the pound still remained sensitive to political developments, particularly the Brexit talks.
Thursday, on account of a report which indicated a decline in the U.S. crude inventories and in face of instability in Nigeria, prices of oil ascended. API (the American Petroleum Institute) revealed on Wednesday that U.S. crude inventories fell by approximately 5.1 million barrels in the week that ended on January 12, 2018. In Africa, the Niger Delta Avengers, Nigeria’s militant group, threatened to attack the country’s petroleum infrastructure.
The international benchmark, Brent crude futures, traded at $69.56 a barrel – 0.3% or 18 cents higher than their previous settlement. The United States West Texas Intermediate climbed by 0.4% or 28 cents and closed at $64.25 per barrel.