The pound today inched higher against the US dollar as most global equity markets remained closed due to the Good Friday holiday celebrations. The GBP/USD currency pair posted gains as investors celebrated the fact that Boris Johnson, the UK Prime Minister, was out of the intensive care unit.
The GBP/USD currency pair today rallied from a low of 1.2444 in the Asian session to a high of 1.2486 in the mid-London session and was near these highs at the time of writing.
The currency pair attempted to break above the 4-week highs hit yesterday but could not make a clean break given the low liquidity conditions in the markets. The cable rallied for the fourth consecutive session despite the rising coronavirus cases and deaths in the UK. Today’s unofficial death toll of 953 is the highest daily total yet from the COVID-19 pandemic, and experts say that this number is likely to keep rising for the next two weeks.
The pair’s gains were limited by concerns that the UK would not complete trade talks with the EU by December as was earlier expected, which could cost the country £26 billion in payments to the EU.
The release of disappointing US consumer price index report for March by the Bureau of Labor Statistics also boosted the pair. The headline CPI print came in at -0.4% missing expectations by 0.1%, while the core inflation print was -0.1% versus the expected 0.1% print.
The cable’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The GBP/USD currency pair was trading at 1.2479 as at 16:28 GMT having rallied from a low of 1.2444. The GBP/JPY currency pair was trading at 135.26, having risen from a low of 135.00.
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