The GBP/USD pair is trading in positive territory around 1.2150 as the US Dollar stays on the back foot. The pair is on track to post weekly gains despite the ongoing uncertainties surrounding Brexit and the COVID-19 pandemic. In this article, we will explore the factors behind the recent movements in the GBP/USD pair.
US Dollar Weakens After UoM Consumer Sentiment Survey:
The US Dollar has been weakening in recent days after the release of the UoM Consumer Sentiment Survey. The survey showed that US consumer sentiment declined in April, with consumers expressing concerns about their personal finances and the overall state of the economy. This has led to a decline in the value of the US Dollar, which is seen as a safe-haven currency during times of uncertainty.
GBP/USD Continues to Rise:
Despite the ongoing uncertainties surrounding Brexit and the COVID-19 pandemic, the GBP/USD pair has remained resilient. The pair has continued to rise in recent days, as investors remain optimistic about the UK’s economic recovery. This optimism has been fueled by the UK’s successful vaccine rollout and the gradual easing of lockdown restrictions.
Furthermore, the Bank of England’s recent decision to hold interest rates at 0.1% has also boosted investor confidence in the UK economy. The central bank has also hinted that it may consider tightening its monetary policy in the future if inflationary pressures persist.
In conclusion, the GBP/USD pair is trading in positive territory as the US Dollar stays on the back foot after the UoM Consumer Sentiment Survey. Despite the ongoing uncertainties surrounding Brexit and the COVID-19 pandemic, the pair remains on track to post weekly gains. The recent optimism surrounding the UK’s economic recovery and the Bank of England’s monetary policy have boosted investor confidence in the GBP/USD pair.