GBPUSD: Recovers from daily lows near 1.3670 as UK economy gears up for re-opening
- GBPUSD cheered up on hopes of a gradual re-opening of the UK economy.
- UK Prime Minister Borris Johnson reminded people to behave ‘“responsibly”.
- However, the strength in the US dollar kept the momentum in check.
The GBP/USD pair is recovering sharply from the intraday lows near the 1.1370 region and climbing back to the daily tops, almost a 75-pip move in the mid-European session.
At the time of writing, GBP/USD is trading at 1.3746, up 0.28% on the day.
The sudden pick-up in the pair has come after the UK economy opened partially today. This includes the outdoor area in pubs and restaurants, hairdressers, gyms, and non-essential retailers, which opened for the first time in several months. Investors turned their attention to the sustainability of the economic growth as the nation entered the next phase of its coronavirus roadmap. The enthusiasm uplifts the cable and boosted the pair’s performance.
However, UK Prime Minister advised people to behave “responsibly” in a remainder that the fears of the pandemic still lingers on. Moving on, black clouds of political uncertainty amid renewed calls for a second referendum on Scottish independence and Brexit structural drag continued to haunt sterling.
As for now, expect the dynamics around the US dollar and risk uncertainty to continue influencing GBP/USD in the short term.