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  • Pound gains more ground versus US dollar, holds above 1.2600.
  • US Dollar Index drops 0.35% under 99.00, to lowest in two-weeks. 

The GBP/USD pair printed a fresh one-month high during the American session at 1.2630. It then pulled back, finding support above 1.2600. As of writing, it trades at 1.2615, up more than a hundred pips for the day.

Cable has risen in five out of the last six trading days boosted by a decline of the US dollar and also amid an improvement in market sentiment. Equity princes in Wall Street are higher following the first earnings reports and some optimism on the coronavirus outlook. 

The greenback is falling particularly against main European currencies and the yen. The DXY drops 0.35% and reached earlier the lowest levels since late March under 99.00. On the contrary, the pound is holding into recent gains after UK Primer Minister Johnson was discharged from hospital two days ago and also boosted by risk sentiment. The pound is also higher versus the euro on Tuesday, with EUR/GBP under 0.8700, at the lowest since March 10. 

The sterling has managed to extend the recovery versus the US dollar and also against the euro following February’s crash. GBP/USD is still below 1.2805 (January’s close), but it is substantially above the bottom near 1.1400 (March 20) while EUR/GBP is less than one hundred pips above the level it opened in March.