The Sterling pound today inched higher against the US dollar for the ninth consecutive session as investors remained worried about the rising coronavirus cases in the US. The GBP/USD currency pair today broke out of an initial trading range during the Asian session and headed higher boosted by positive UK releases.
The GBP/USD currency pair today rallied from a low of 1.2912 in the Asian session to a high of 1.3014 in the American session before giving up some of its gains.
The currency pair traded sideways during the Asian session driven by subdued investor sentiment before spiking higher in the early London session. The release of the upbeat UK public sector net borrowing data, which came in at £1.8 billion versus the expected decline of £0.4 billion. According to the Office for National Statistics, consumer credit figures also fell by less than expected during June. Comment’s by the Bank of England‘s Chief Economist Andy Haldane regarding the UK’s economic recovery also boosted the pair since he noted that some regions were reporting accelerated recovery numbers.
The cable spiked to its daily highs during after the Federal Open Market Committee left US interest rates unchanged. The dovish speed speech by Jerome Powell, the Fed chair contributed to the greenback’s woes boosting the pair.
The currency pair’s future performance is likely to be affected by geopolitical events and tomorrow’s US jobs and GDP data.
The GBP/USD currency pair was trading at 1.2981 as at 10:54 GMT, having risen from a low of 1.2912. The GBP/JPY currency pair was trading at 136.29, having rallied from a low of 135.67.
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