19 May 2020
At the beginning of the week, the Pound to USD exchange rate was being traded higher following positive news about the coronavirus drug trial, increasing risk appetite.
But in the UK, there was a rise in the number of people who are claiming for unemployment benefits during the first month in lockdown.
As a result, the British Pound is being pressured. Britain’s claimant count soared by 856,500, according to the Office for National Statistics.
Last week the pair was performing poorly after British authorities launched the plan to ease coronavirus lockdown measures, worrying traders.
The GBP/USD pair is being traded above 1.22.
On the other hand, Pound Sterling Australian Dollar (GBP/AUD) exchange rate remained flat on Tuesday morning, at AU$1.8696.
Tokyo’s IG Securities’ Junichi Ishikawa explained, “There has been a big improvement in risk sentiment because of hopes for a vaccine. Volatility is falling for stocks and Dollar-funding costs are lower. It’s easy for the Dollar to fall and for other currencies to ride the Dollar’s losses higher.”
Additionally, the Pound to South African Rand (GBP/ZAR) exchange rate is around R22.38. Hopes for a coronavirus vaccine continued to boost the South African Rand.