- Pound (GBP) boosted by easing lockdown measures in Leicester and hopes of more healthcare funding
- Boris plans a drive to bring UK back to normal, including office workers back to desks
- US Dollar (USD) eases as hopes for further stimulus overshadow rising coronavirus statistics
- US consumer confidence data due later in the session
The Pound US Dollar (GBP/USD) exchange rate is rebounding on Friday after settling in the previous session -0.25% at the familiar support of US$1.2550. At 06:15 UTC, GBP/USD trades +0.15% at US$1.2570.
The pair is on track for weekly losses of 0.4% after two straight weeks of gains.
News that a stricter lockdown in Leicester will be eased after a drop in coronavirus cases is underpinning the Pound. The British Health Secretary announced that some restrictions would be lifted after the break-out was quickly brought under control.
Reports that UK Prime Minister Boris Johnson is looking to pour £3 billion into the NHS as part of a nine month plan to get the UK back to normal is also adding to a positive tone surrounding Sterling. The plan also includes a drive to get millions of office workers back to their desks. However, he could struggle with this part of the plan with 10 top firms in the Square Mile saying that they will only bring back 20% or fewer of their employees.
The US Dollar is trending lower on the final day of the trading week as hopes of more government spending suppressed concerns over rising coronavirus statistics. Market participants are counting on the US policymakers to adopt more stimulus measures as the world’s largest economy struggles to contain the spread of coronavirus.
Te US tallies more than 70,000 new daily cases for the first time. The record increase is accompanied by a sharp jump in cases and fatalities in Texas and Florida. The rising number of cases in the southern states come despite moves by several states to re impose strict social distancing measures and in some areas roll back reopening measures.
Attention will now turn to US consumer confidence data. Analysts are expecting to see a very slight increase in consumer confidence in July, to 79, up from 78.1. A weaker reading could hurt risk sentiment and boost the US Dollar.