Sterling did a big u-turn going from biggest winner last week to biggest loser this week. Concerns from the Bank of England on the jobs outlook and a weaker-than-expected read on the economy were the likely drivers for traders to put the pressure on the British pound this week.
United Kingdom Headlines and Economic data
After an early Asia session pop higher, Sterling moved lower during the U.S. session, possibly on a combination of dovish rhetoric from the BOE Governor and a flip in risk sentiment back to negative during the U.S. session after news broke of California closing a variety of businesses back down to send the franc higher.
Sterling found buyers during the U.S. session, likely on positive global risk sentiment. This time it was positive equity earnings headlines (Dow rises for a third straight day, rallies more than 500 points as Caterpillar leads) that appeared to be the main driver, over shadowing negative geopolitical news (Trump “not interested” in Phase 2 trade talks with China) and accelerating virus cases growth.