Sterling eased against the dollar on Tuesday, though still remains up against the greenback year to date for 2018.
The pound had slipped by around 0.25% to trade at just over $1.37 as at 13.40 GMT on Tuesday.
Sterling is still up against the dollar by around 2% so far this year.
“Despite there being no new positive information about Brexit, across the board there has been a consistent and notably weaker US dollar. Indeed, the greenback has lost 2% this year, following on from a 10% decline in 2017. It’s certainly perplexing when you consider that the rate hike cycle the US Federal Reserve is employing at the moment would normally lead to a stronger US dollar,” commented Jordan Hiscott, chief trader at ayondo markets.
However, much will depend on the strength of the US economy and the pace of further rate tightening from the Federal Reserve (Fed).
In particular, a pick up in US consumer price and wage inflation could tip the scales towards dollar strength if the Fed takes a more hawkish stance.
“In regards to GBPUSD, the next important resistance trading level comes in at $1.44, and if we do manage to move this high, I expect to see significant sell side interest,” added Hiscott.