For the first time in four trading days, the GBP/USD pair increases.
Poor UK statistics, Brexit, and covid troubles are countered by risk recovery.
The cable is boosted by DXY weakness, but the London fix is a drag.
The GBP/USD pair encounters additional supply in the London fix on Friday, giving up over 50 pips to return to the 1.3800 level.
The cable, on the other hand, made a spectacular comeback from multi-day lows of 1.3741, however it fell short of the 1.3900 barrier before the sellers regained control.
The 115-pip rally in the cable followed a sudden shift in risk sentiment, as global stocks surged, reducing the appeal of the US dollar as a safe haven.
Following Thursday’s sell-off across the board, investors appear to have shrugged aside the latest fears about the Delta covid variant and its influence on the global economic recovery.
Meanwhile, increased Brexit concerns, rising covid cases in the UK, and disappointing GDP data have had no influence on the pound, as risk-on flows continue to be the key market driver.
“Brussels and London were locked in a dispute over the magnitude of the UK’s Brexit bill on Thursday, after the EU proposed that Britain would be obligated to pay EUR47.5 billion (GBP40.8 billion) as part of its post-Brexit arrangements,” the Financial Times (FT) said early Friday.
According to the latest Covid data, the UK reported a spike of 32,551 new infections on Thursday, putting Prime Minister Boris Johnson’s reopening plans in jeopardy.
Investors were also unconcerned over poor UK data, as GDP fell short of expectations by 0.8 percent in May, while Manufacturing Production fell unexpectedly by 0.1 percent MoM in the same month./n
