The Sterling pound today rallied against the US dollar in a turn of events that saw the dollar lose ground against most of its peers. The GBP/USD rallied above the crucial 1.30 level as demand for the greenback weakened despite new coronavirus infections.
The GBP/USD currency pair today rallied from an opening low of 1.2914 to a daily high of 1.3018 in the American session before giving up some of its gains.
The currency pair rallied higher at the start of today’s session as investors were bombarded with coronavirus headlines. The situation got worse for the US dollar as investors flocked to the safe-haven US Treasuries driving down their yields, which made the dollar quite unattractive. The Sterling pound rallied against the greenback as its returns are currently more attractive than those of the dollar. The pair completely ignored the European Union negotiating mandate for the upcoming Brexit talks, which was published in the mid-European session. The EU emphasised the need for a level playing field and the UK is expected to issue reiterate a tough negotiating stance when it publishes its negotiating mandate later this week.
The pair dipped lower before rallying to new highs in the American session after the release of the US housing price index for December by the Federal Housing Finance Agency. The pair’s rally was boosted by the weak greenback as tracked by the US Dollar Index.
The currency pair’s future performance is likely to be affected by news headlines and US dollar dynamics given the empty UK dockets.
The GBP/USD currency pair was trading at 1.3005 as at 21:36 GMT having risen from a low of 1.2914. The GBP/JPY currency pair was trading at 143.24 having fallen from a high of 143.64.
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Pound Rallies on US Dollar Weakness and Coronavirus Headlines
