Sterling eked out mild gains against most major currencies, barring the euro, as global markets turned their attentions to the inauguration of Donald Trump, now US president.
Cable gained ground on Thursday despite the release of upbeat economic data Stateside and support for a long-term strong dollar policy from Trump´s candidate to head the US Treasury.
Swings in the US dollar continued to call the tune for commodity prices, with a bounce in the Greenback´s helping to limit further gains in precious metals.
Falling energy futures dragged the commodities complex lower on Wednesday.
The pound was on the backfoot as the US dollar rebounded following its weak start to the holiday-shortened week in the States and after the US president elect voiced criticism of a weaker Chinese yuan.
Then current oil prices would definitely trigger a "strong" supply response from US alternative oil producers, the chief of the rich-world´s energy watchdog said.
Commodities were weaker nearly across the board, outside of copper and natural gas futures, on the heels of remarks from the US president-elect which acted as a drag on the dollar.
Sterling snapped higher after a speech by the Prime Minister triggered short-covering from traders, with US dollar-negative remarks from president elect Donald Trump giving the pound a further boost in its cross against that currency.
The pound was sent reeling by reports over the weekend that the Prime Minister was set to announce the next day that the UK was willing to leave the European Union's single market and customs union in order to regain control over immigration and escape from the jurisdiction of the European Court of Justice.
Commodities were little changed at the end of the week on Friday as traders kept their cards close to their chest ahead of the long holiday weekend in the States.
Cable edged slightly higher ahead of the long holiday-weekend in the States and following two days of sometimes heavy selling in the US dollar.
Commodities were well bid as higher-than-expected factory price data out of China referencing the month of December boosted the price of many metals.
Data showing continued increased US oil and gas exploration activity weighed on energy futures, more than offsetting a tailwind from a slight retreat in the US dollar.
Cable continued its recent push lower following remarks by the Prime Minister over the weekend which some market commentary took to mean the chances of a so-called 'hard' Brexit had increased.
The Chinese yuan jumped as measures by Beijing to rein in foreign exchange purchases by residents in the country began to bite, reducing liquidity in the offshore market and sending overnight rates in Asia's largest economy to what some analysts described as an "eye-watering" 38% for any market participant in need of funding.
A second day of gains for the Chinese yuan halted US dollar strength, boosting the prices of most commodities, particularly precious metals.
Commodities started the year in the red after early strength in crude oil futures crumbled in the face of renewed gains in the greenback.
Broad-based strength in the US dollar continued at the start of 2017, as did weakness in the Turkish Lira and resilience in Russia's ruble.
Crude-oil futures were higher on Thursday afternoon, propped by positive sentiment that producers of the black liquid would abide to an output cap.
Crude-oil futures are higher on Tuesday afternoon but remain below their December highs, with an expectation that prices might now stabilise going forward.