The British pound is higher against the US dollar on Friday.
Sterling brushed off news that British Prime Minister Boris Johnson had tested positive for the coronavirus, continuing the upward momentum that has been in place all week.
Actions to ease access to dollar funding from the Federal Reserve last week have a profound effect on the value of the US dollar, which is on course for big weekly drops against most G10 currencies.
GBP/USD was up by 165 pips (+1.39%) to 1.2370 with a daily range of 1.2132 to 1.2388 as of 4pm GMT.
The currency pair briefly dipped into negative territory below 1.22 before carrying on its upward trajectory to a new 2-week high.
British pound reaches two-week high
The moves higher in the British pound were more a function of a weaker US dollar and generally improved risk appetite across markets. Although stock markets pulled back on Friday, there was not the sense of panic evident in previous daily drops.
Boris Johnson said in a video posted online that he had tested positive for the coronavirus. He took the test for COVID-19 on medical advice after feeling mild symptoms including a temperature and persistent cough.
The mild symptoms mean he will self-isolate for 7-days but can continue working as Prime Minister via teleconference, which meant the reaction in the pound was limited. He had been seen outside 10 Downing Street last night at a more than 2 metre distance form Chancellor Rishi Suank waving in support for NHS workers.
Health Secretary Matt Hancock also tested positive and is too self-isolating for 7-days as per the medical advice being given by Public Health England.
Dollar continues to fall after Fed measures
The pound established a bottom at the 35-year low of 1.15 two weeks ago and has gained almost one big figure since then. At the same time the dollar is on course for one of its worst week in years.
So far the Fed seems to have fixed the financial plumbing issues that caused a mass scramble for dollars. Additionally, the very weak jobless claims figures released on Thursday have posed fresh questions about the United States economy will fare under lockdown.
