Sterling Falls on Rising COVID-19 Cases as Johnson Reopens UK Economy

The  Sterling pound today failed to  capitalise on  the  dollar’s overall weakness like other major currencies amid rising coronavirus cases in  the  UK that scared investors. The  GBP/USD currency pair fell for  half of  today’s session before recovering during the  American market on  mixed US housing data to  trade flat for  the  day.
The  GBP/USD currency pair today fell from a  high of  1.2571 in  the  Asian session to  a  low of  1.2512 before recovering later to  trade flat for  the  day at  the  time of  writing.
The  currency pair headed lower earlier today driven by  the  lack of  significant releases from the  UK docket meant that the  pair was extremely susceptible to  news events. The  pound failed to  rally despite the  upbeat comments delivered by  Andrew Bailey the  Bank of  England Governor early in  London. Bailey said that he sees an  uneven recovery happening in  the  UK economy with healthy activity in  the  housing sector and  the  car sales industry. The  Governor expressed concern over the  coronavirus situation in  the  UK even as  Sir Patrick Vallance warned that people should work from home, if possible.
The  cable’s rally was further boosted by  the  weak Univerity of  Michigan US consumer sentiment survey for  July, which came in  at  73.2 versus the  expected print of  79.0. The  pair’s rally was also boosted by  Boris Johnson‘s plan for  reopening the  UK economy starting August 1.
The  pound’s performance over the  upcoming weekend is likely to  be affected by  geopolitical events.
The  GBP/USD currency pair was trading at  1.2572 as  at  18:21 GMT, having rallied from a  low of  1.2512. The  GBP/JPY currency pair was trading at  134.47, having fallen from a  high of  134.91.
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