Pound Rallies on Bullish Sentiment Despite Rising UK COVID-19 Cases

The  Sterling pound today rallied higher against the  US dollar despite the  current lockdown in  the  UK amid rising coronavirus cases as  opposed to  other European countries. The  GBP/USD currency pair today rallied higher as  the  dollar retreated driven by  the  risk-on market sentiment as  Boris Johnson prepares to  host a  cabinet meeting today.
The  GBP/USD currency pair today rallied from an  opening low of  1.2428 in  the  Asian session to  a  high of  1.2517 in  the  mid-London session and  was headed higher at  the  time of  writing.
The  pair’s rally was mostly driven by  investor sentiment given the  lack of macro releases from the  UK docket. Some analysts attributed the  rally to  the  fact that Boris Johnson is back at  the  helm of  the  British government despite the  deepening COVID-19 crisis. Investors were undeterred by  the  news that the  UK’s lockdown measures could extend into June as  compared to  other European countries that are reopening their economies. News that Gilead Sciences remdesivir drug was showing positive results in  treating COVID-19 patients also boosted investor risk appetite lifting riskier assets such as  the  pound.
The  greenback’s overall weakness as  tracked by  the  US Dollar Index, which hit a low of 99.39 today also contributed to the cable’s rally. The DXY has been on a downtrend for the past five sessions despite the  Federal Reserve’s promise to  support the  US economy.
The  currency pair’s short-term performance is likely to  be affected by  the  US personal consumption data and  Johnson’s speech later today.
The  GBP/USD currency pair was trading at  1.2526 as  at  11:44 GMT having rallied from a  low of  1.2428. The  GBP/JPY currency pair was trading at  133.44, having risen from a  low of  132.67.

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