Pound Falls Then Rallies on Upbeat UK Jobs Data and Risk-On Mood

The Sterling pound initially fell against the dollar due to the prevailing risk-off market sentiment but later rallied on upbeat UK jobs data and a shifting mood. The GBP/USD currency pair later recouped all its earlier roses and printed new daily highs as the greenback fell amid a spike in investor risk appetite.
Today’s GBP/USD currency pair fell to a low of 1.3609 in the early London market before rallying to a high of 1.3744 in the early American session and was near these highs at the time of writing.
The currency pair headed lower initially driven by the risk-off market mood amid rumours that Joe Biden’s stimulus package might be delayed due to disagreements in Congress. Investors were also worried about the rising coronavirus cases in the UK and the increasing likelihood that the country would impose new quarantine measures on international travellers. The pair reversed course after the release of the UK unemployment rate data, which came in at 5.0% beating analysts estimates set at 5.1%. According to the UK’s Office for National Statistics, the country’s claimant count also fell to 7,000 claims versus the consensus estimate of 35,000 claims. The UK’s average earnings also rose 3.6% beating expectations of 2.9%.
The currency pair rallied higher as investor sentiment turned decidedly bullish on news that Johnson & Johnson was set to release its coronavirus vaccine results, which is billed as a super-vaccine because it requires only one shot for full immunity.
The currency pair’s short-term performance is likely to be affected by Boris Johnson’s speech scheduled for 17:45 GMT.
The GBP/USD currency pair was trading at 1.3731 as at 17:46 GMT having rallied from a low of 1.3609. The GBP/JPY currency pair was trading at 142.35, having risen from a low of 141.28.
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Original from: www.earnforex.com