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GBP/USD climbs above 1.2500 as DXY drops below 99.50

  • US Dollar Index fails to hold on to recovery gains.
  • British Prime Minister Johnson will deliver the daily press briefing.
  • Coming up: Weekly Jobless Claims and PCE Price Index from US.

After fluctuating in a relatively tight range near the 1.2450 area, the GBP/USD pair gained traction and rose above 1.2500 as the greenback seems to be struggling to find demand ahead of key data releases. As of writing, the pair was up 0.32% on a daily basis at 1.2504.

PM Johnson to hold cabinet meeting

Later in the day, British Prime Minister Boris Johnson will deliver the daily press briefing after holding a cabinet meeting for the first time since returning to the office. In an article published earlier in the day,  the Telegraph said that the PM is likely to announce that social distancing measures are needed to remain largely in place. “It became clear on Wednesday that they favour a highly cautious approach to lifting the restriction,” the Telegraph wrote.

In the second half of the day, the weekly Initial Jobless Claims and the Personal Consumption Expenditures (PCE) Price Index from the US will be watched closely by the market participants. Ahead of these data, the US Dollar Index (DXY) is posting modest daily losses at 99.40.

Heightened hopes of Gilead Sciences’ remdesivir being used as an effective treatment following the latest reports provided a boost to the market sentiment on Wednesday and caused the DXY to close in the negative territory for the fifth straight day. Investors will be keeping a close eye on Wall Street’s performance as well.

Technical levels to watch for

 

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