The British pound managed to take down most of the major currencies at the close of Friday.
After a Monday spike higher thanks to comments from Bank of England Deputy Governor Dave Ramsden on a likely floor on interest rates, Sterling was choppy with some downward pressure against risk currencies For the rest of the week. This was likely due to global risk sentiment leaning positive, and likely on concerns with Brexit and the rise in COVID-19 cases.
We saw a broad spike in the British pound against the majors, correlating with the reaction to U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19. Based on the price action across the major currencies, the reaction in Sterling was a mix of counter currency weakness and risk aversion behavior.
Every day, I will present to you my findings and daily commentaries on what recently happened in the economic arena, possible shifts in sentiment, economic events to watch out for, and their effects on currencies.