- GBP / USD rises to test two-month highs at 1.3175.
- The pound on the way to its best week in recent months.
- The post-election spike in risk saw the US dollar fall.
The British pound rallied against a broadly weaker US dollar on Friday to hit the top of its trading range for the past two months at 1.3175 which, so far, remains intact.
The pound consolidates its recovery against a weak dollar
The British pound has been trading sideways for most of the day, consolidating gains above 1.3100 after rallying on Thursday, with the dollar on the defensive amid the post-election risk spike.
The market has welcomed news of the US presidential election with equity markets soaring this week as Joe Biden took the lead in key states, closing in on the White House as Republicans maintain control of the Senate to block the Democrats’ grand stimulus plan or any attempt to raise taxes.
The British pound is on track for a 1.5% advance this week, largely unaffected by the Bank of England’s monetary policy decision. The Bank announced a plan to increase its already huge asset purchase program by £ 150bn on Thursday to offset the economic impact of the coronavirus lockdown.
On the macro front, the better-than-expected US non-farm payroll report, which showed a 638,000 increase in employment in October, beating market expectations of a 600,000 increase, has offered no relevant support. to a weakened dollar.
Credits: Forex Street
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