- GBP / USD is up for the first time in four trading days.
- The risk recovery offsets bad UK data, Brexit and covid problems.
- DXY weakness boosts the pound.
The GBP/USD it runs into new offers on Friday, rapidly cutting nearly 50 pips to get back to the 1.3800 level.
The pound, however, witnessed a stellar rally from the multi-day lows of 1.3741, although it did not hit the 1.3900 barrier before sellers regained control.
The pound’s 115-pip rebound came after a sharp turnaround in risk sentiment as global equities rallied and weakened the US dollar’s appeal as a safe haven.
Investors appear to be ignoring the latest concerns about the covid Delta variant and its impact on the global economic recovery.
Meanwhile, renewed concern over Brexit, rising UK covid cases and pessimistic GDP fail to have any impact on the pound either, as risk appetite flows remain the market’s main driver.
The Financial Times (FT) reported early Friday, “Brussels and London were locked in a dispute on Thursday over the size of the UK’s Brexit bill, after the EU suggested Britain would be required to pay € 47.5 billion. euros (£ 40.8 billion) as part of their post-Brexit deals. “
In covid updates, the UK saw an increase of 32,551 new infections on Thursday, which could threaten Prime Minister Boris Johnson’s reopening plans.
Investors also paid some attention to the disappointing UK statistics, as GDP disappointed estimates with 0.8% in May, while British manufacturing output unexpectedly fell 0.1% month-on-month in the reported month.
GBP / USD: technical levels
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