For the first time since June 29, the GBP/USD trades over 1.3880.
Following the announcement of the NFP statistics the previous week, the US dollar has remained rather stable.
The pound is attempting a return, buoyed by strong economic statistics and optimism about the economy’s reopening.
In the Asian session on Tuesday, the GBP/USD pair adds to its recent advances. The pair rallied sharply in three days after testing the low of 1.3731 on Friday, reaching an intraday high above 1.3890.
GBP/USD is trading at 1.3886 at the time of writing, up 0.30 percent for the day.
The US Dollar Index (DXY) is trading at 92.10, down 0.08 percent on the day. Since the beginning of July, with the release of the NFP report, the greenback has been sluggish.
Investors believe the US job data is insufficient to persuade the Federal Reserve to change its ultra-accommodative monetary policy position. The FOMC Minutes of Meeting, which will be released on Wednesday, may shed light on the policymakers’ approach to future interest rate and growth recommendations.
The sterling, on the other hand, benefited from the optimism generated by the unlocking news. Boris Johnson, the Prime Minister of the United Kingdom, has reiterated his intention to abolish the majority of England’s remaining COVID-19 restrictions by July 19th. On July 12th, the final announcement will be made.
The Prime Minister of the United Kingdom expressed confidence that the faster vaccination campaign would reduce hospital admissions if instances increased after all restrictions were lifted.
Meanwhile, UK Housing Secretary Robert Jerick has stated that existing laws, such as the requirement to wear a face mask, will become “personal choice.”
In terms of economic statistics, the IHS Markit/CIPS UK Composite PMI was 62.2 in June, which was higher than the market’s forecast of 62.9.
In the most recent development, the UK Prime Minister’s Taskforce on Innovation, Growth, and Regulatory Reform (TIGRR) released the framework for the post-Brexit deregulation program targeted at reducing regulatory barriers to the corporate and financial sectors.
For the time being, investors are waiting for the US ISM Service Purchase Manager Index (PMI) to be released in order to obtain new trade momentum./n
