The Sterling pound today failed to capitalise on the dollar’s overall weakness like other major currencies amid rising coronavirus cases in the UK that scared investors. The GBP/USD currency pair fell for half of today’s session before recovering during the American market on mixed US housing data to trade flat for the day.
The GBP/USD currency pair today fell from a high of 1.2571 in the Asian session to a low of 1.2512 before recovering later to trade flat for the day at the time of writing.
The currency pair headed lower earlier today driven by the lack of significant releases from the UK docket meant that the pair was extremely susceptible to news events. The pound failed to rally despite the upbeat comments delivered by Andrew Bailey the Bank of England Governor early in London. Bailey said that he sees an uneven recovery happening in the UK economy with healthy activity in the housing sector and the car sales industry. The Governor expressed concern over the coronavirus situation in the UK even as Sir Patrick Vallance warned that people should work from home, if possible.
The cable’s rally was further boosted by the weak Univerity of Michigan US consumer sentiment survey for July, which came in at 73.2 versus the expected print of 79.0. The pair’s rally was also boosted by Boris Johnson‘s plan for reopening the UK economy starting August 1.
The pound’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The GBP/USD currency pair was trading at 1.2572 as at 18:21 GMT, having rallied from a low of 1.2512. The GBP/JPY currency pair was trading at 134.47, having fallen from a high of 134.91.
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