Pound Rallies Against Weak Dollar on New £30 Billion Stimulus Plan

The  pound today rallied higher against the  US dollar, driven by  positive investor sentiment and  the  weakening of  the  greenback against most of  its peers. The  GBP/USD currency pair today rallied to  new highs as  investor risk appetite soared buoyed by  the  government’s new fiscal stimulus plan.
The  GBP/USD currency pair today rallied from a  low of  1.2508 at  the  London open to  a  high of  1.2623 in  the  American session and  was trading near these highs at  the  time of  writing.
The  currency pair traded sideways and  fell during the  Asian market before rallying higher later. The  pound rallied higher today despite the  lack of  macro releases from the  London session amid resurgent Brexit optimism as  the  UK and  EU report progress in  negotiations. The  pair’s rally accelerated during the  American session as  UK Chancellor of  the  Exchequer; Rishi Sunak was scheduled to  speak. Sunak outlined a  significant fiscal stimulus spending plan that could see Boris Johnson’s government borrow up to   £30 billion to  support the  British economy and  prevent job losses.
The  greenback’s weakness, as  tracked by  the  US Dollar Index, also contributed significantly to  the  pair’s rally. The  rising coronavirus cases in  the  US also drove investors away from the  dollar, boosting the  cable.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s US jobless claims data and  geopolitical events.
The  GBP/USD currency pair was trading at  1.2611 as  at  19:52 GMT, having rallied from a  low of  1.2508. The  GBP/JPY currency pair was trading at  135.24, having risen from a  low of  134.58.
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