The pound / dollar pair reduced part of its early growth to weekly highs

02.07.2020 17:26
The pound / dollar pair reduced part of its early growth to weekly highs, although it still managed to stay in positive territory, near the key psychological mark of 1.2500. The pair recovered from the mid-1.200 and continued to gain momentum in the first half of trading on Thursday thanks to the us dollar sales. The latest optimism about the positive results of early human trials of the Covid-19 vaccine continued to support upbeat market sentiment. This, in turn, was seen as one of the key factors undermining the demand for a safe haven for the dollar. Global risk sentiment received an additional boost after the publication of a strong monthly report on employment in the US . The data provided further evidence that hopes for a sharp V-shaped global economic recovery remain. Meanwhile, risk aversion led to a strong intraday rise in US Treasury yields, which helped the dollar rebound from daily lows. This, combined with the continuing brexit uncertainty, limited the growth of the pound/dollar pair and caused intraday profit-taking. In recent Brexit-related headlines, negotiations between the UK and the EU have failed to achieve a significant breakthrough on a number of important issues. European Union Brexit chief Michel Barnier also said there were still serious unresolved issues between the bloc and the UK.

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