The British pound took the top spot this week despite continued Brexit & coronavirus pandemic uncertainty. It’s likely the announcement of additional U.K. stimulus was the main driver for Sterling, and it’s also possible that broad risk-on sentiment was a contributor as well.
United Kingdom Headlines and Economic data
Sterling began its rally for the week during the U.S. session and there didn’t appear to a direct catalysts. Could it have been expectations of a stimulus announcement to come?
UK chancellor unveils £30bn plan to protect millions of jobs – this was the announcement that likely pulled in more buyers in Sterling during the Wednesday session and through the rest of the week.
Global risk sentiment flipped to positive during the U.S. session. This was likely on news from Gilead that remdesivir coronavirus treatment reduces risk of death, which is likely why we saw the pound rise against the safe havens into the Friday close.