The pound continued to rise higher as it entered the European session following the continued weakness of the greenback dollar, putting it on track for its best week since December.
The decline in COVID-19 cases, though still high, and the reopening of the British economy have prompted a recovery in the pound which has risen around 3% in less than two weeks to approach the 1.4000 price level against the USD.
This week, the pound sterling has risen 1.6% against the greenback, making it one of the best performing major currencies.
The US dollar king continued to decline lower in the European session, with the dollar index trading at 91.82 against a basket of other major currencies.
After being frustrated by the Federal Reserve’s (Fed) statement that it was in no hurry to cut bond purchases and slower-than-expected U.S. economic growth data, investors are now focusing on the release of consumer personal spending (PCE) data tonight.
Meanwhile, the euro also maintained its strengthening momentum at a three -week high, to rise closer to the 1.1900 price level against the US dollar.
In addition to the weakness of the USD, the strengthening of the euro was also supported by preliminary readings of economic data which showed strong growth in several European countries in the second quarter, particularly Germany despite slightly deviating from market expectations.
Other major currencies, the Aussie dollar and the kiwi also traded higher, taking advantage of opportunities to rise in the wake of the weaker US dollar.
