The Pound caught a fresh bid from the market on Friday when official data showed the economy gaining momentum in the first-quarter for the first time in five years, with pre-Brexit preparations among manufacturers proving a key source of activity.
Downside pressures on the British Pound has eased over the past 12 hours with confirmation that the Labour and the Government have not in fact broken down and the two sides remain in negotiations to forge a cross-party Brexit deal.
The British Pound is trading lower in mid-week trade with markets finding little positive in the latest updates concerning the status of cross-party Brexit talks which are now not expected to deliver a breakthrough this week.
The British Pound is seen defending recent advances made against the Euro and U.S. Dollar amidst a renewed sense of optimism amongst currency market traders that this week there could finally be a material breakthrough in the entrenched Brexit impasse.
Pound Sterling is the week's best performing currency, enjoying gains of three-quarters of a percent against the Euro and one percent against the U.S. Dollar. Ahead of the weekend, currency traders will be digesting the results of local elections which suggest the Conservative Party have avoided a bloodbath.
The Pound was riding high at the top of the G10 league table Wednesday and by many accounts, could be due a further run of gains over the course of Thursday as the Bank of England (BoE) is now on the verge of becoming the only game in town for yield-hungry investors.
Reports out overnight suggest the countdown to Prime Minister Theresa May's departure have begun, and this could make for a weaker Pound Sterling over the summer as the next leader of the country pursues a 'Brexit at all costs' policy.