The Sterling pound today rallied for the third straight session against the US dollar amid hope that Boris Johnson was recovering despite rising COVID-19 deaths in the UK. The GBP/USD currency pair posted gains as investors reacted calmly to rising coronavirus deaths in the UK and the risk posed by the pandemic to the British economy.
The GBP/USD currency pair today rallied from an Asian session low of 1.2288 to a high of 1.2419 in the American session and was near these highs at the time of writing.
The currency pair rallied higher from the early London session as European traders bought the pair even as other majors traded sideways against the dollar. Investors were not bothered by the fact that Boris Johnson, the Prime Minister, was still in intensive care treatment. The British government today admitted that it does not know when the country will start flattening the COVID-19 epidemic’s curve as the deaths keep rising. The currency pair remains in a consolidative range despite its latest 3-day rally following its massive rally from multi-decade lows hit in March.
The currency pair’s rally was further aided by the greenback’s overall weakness as tracked by the US Dollar Index, which hit a low of 99.92 today. The release of the FOMC minutes in the American session had a muted impact on the pair as it reiterated the Fed’s current position.
The currency pair’s future performance is likely to be affected by COVID-19 news and tomorrow’s multiple UK releases.
The GBP/USD currency pair was trading at 1.2395 as at 19:02 GMT having rallied from a low of 1.2288. The GBP/JPY currency pair was trading at 134.88, having risen from a low of 133.69.
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