• GBP/USD struggled to push beyond $1.2970 .
  •  BoE Governor Bailey’s dovish stance weighed on the pound.
  • The risk-on trading dragged on USD capping losses

The GBP/USD hit a daily low in the European session, with bears targeting1.29.

Bank of England (BoE) Governor, Andrew Bailey’s comments that the central bank will use policy actively and aggressively hit demand for the Pound. Concerns of negative interest rates were revived by Bailey saying that the BoE stood ready to take further action if needed.

Brexit-related uncertainties, also weigh on the Pound. GBP/USD pulled back 80 pips from 1.2970. A weaker USD capped the downside.

renewed optimism over the US fiscal stimulus has lifted the mood in the market pulling on demand for the safe haven greenback US President Donald Trump revived hopes of covid relief aid indicating that smaller standalone bills could work.

A decline in US Treasury bond yields weighed on the USD. US Initial Weekly Jobless Claims are up next and could provide some direction.