Pound Rallies on US Dollar Weakness and Coronavirus Headlines

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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