British Pound Falls on Profit-Taking After Massive Rally Last Week

The  Sterling pound today fell to  fresh lows against the  US dollar as  investors took profits after last week’s dizzying rally where the  pound outperformed all G10 currencies. The  GBP/USD currency pair today fell despite the  upbeat investor risk appetite that saw global equities rally amid hopes of  an  economic recovery post-COVID-19.
The  GBP/USD currency pair today fell from a  high of  1.2666 in  the  Asian session to  a  low of  1.2569 in  the  American market and  was headed lower at  the  time of  writing.
The  currency pair rallied higher during the  Asian session up to  its daily high, where it met significant resistance and  turned lower. Traders started taking profits at  this point fueling the  pair’s decline to  its daily lows. The  lack of  macro releases from the  British docket meant that the  cable was susceptible to  geopolitical events. Andrew Bailey, the  Bank of  England Governor today said that he was very worried about British jobs, which indicates that the  government may be expecting high unemployment levels.
The  confusion regarding the  British government position on  wearing face masks in  confined public spaces such as  shops also dragged the  pair lower. However, Boris Johnson, the  Prime Minister today, said that he thinks people should wear masks in  shops.
The  pound’s decline was isolated among the  risk-associated assets given that the  greenback was very weak as  tracked by  the  US Dollar Index.
The  cable’s future performance is likely to  be affected by  tomorrow’s UK GDP data and  US inflation report.
The  GBP/USD currency pair was trading at  1.2566 as  at  19:07 GMT having dropped from a  high of  1.2666. The  GBP/JPY currency pair was trading at  134.84 having fallen from a  high of  135.48.
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