Sterling rose on Wednesday after upbeat U.S. data clipped safe-haven demand for dollars and as British manufacturing survey data pointed to a small increase in output after the historic collapse caused by the coronavirus.
The dollar slipped on Tuesday, alternating between gains and losses, as markets digested less bearish comments from U.S. monetary officials along with a more dire prognosis from the country's top medical expert on the spread of the novel coronavirus.
Sterling headed for its first positive week in four against the dollar on Friday, holding below the $1.25 mark as a week of negotiations between Britain and the European Union ended prematurely, with meetings expected to resume next week.
The dollar edged up on Friday but was set for its biggest weekly fall since the start of June, as a sentiment boost from better-than-expected jobs data in the United States was tempered by surging coronavirus cases.
Sterling rebounded on Tuesday from early losses exacerbated by worse than expected UK GDP data, although analysts said its recovery was due to some end-of-quarter rebalancing rather than any improvement in sentiment.
Sterling retreated against a broadly firmer dollar on Tuesday, as investors awaited confirmation of the government's spending plans to lift an economy that posted its biggest contraction in 40 years in early-2020.
The greenback edged higher on Monday as investors positioned for quarter-end and weighed an increase in coronavirus cases in some U.S. states against improving economic data.
The dollar struggled to make headway on Monday, and riskier currencies inched ahead, as investor sentiment swung between hopes for a global economic recovery and fears that a fresh wave of coronavirus cases could undermine the revival.
A firm dollar kept riskier currencies under pressure on Monday, as a surge in coronavirus cases and the re-imposition of curbs to stop its spread had investors worried that a global economic recovery could be derailed even before it had taken root.
The safe-haven dollar edged higher in choppy trading on Friday, moving within narrow ranges, as investors grew cautious about a resurgence in U.S. coronavirus cases that has fueled doubts on expectations of a V-shaped recovery for the world's largest economy.
Sterling fell 0.8% against the dollar on Friday, touching its lowest level in almost a month, with doubts about whether Britain will seal a trade pact with the European Union set to be the biggest weight on the currency over the summer.
The U.S. dollar gained on Thursday due to safety buying as fears grew over a rapid rise in coronavirus infections in some U.S. states, and as trade tensions worsened between the United States and the European Union.
The dollar strengthened on Wednesday as a rise in coronavirus cases in the United States reduced confidence in a quick economic recovery, and as the U.S. weighed tariffs on European products.
The pound fell against the dollar on Wednesday, as fears of a second wave of coronavirus infections and news the United States is reviewing tariffs on European products curbed global risk appetite and boosted demand for the safe U.S. currency.
The euro jumped to one-week high following positive economic data on Tuesday and higher-risk currencies, including the Australian dollar, were boosted after U.S. officials confirmed that the U.S.-China trade deal is intact.
Sterling hit its lowest levels since March against the euro on Tuesday, but cable rose 0.4%, as global risk appetite improved due to positive European economic data and an easing of U.S.-China tensions, lessening demand for the safe U.S. dollar.
The U.S. dollar weakened and higher-risk currencies including the Australian dollar jumped on Monday as investors focused on the prospect for an eventual economic recovery from the coronavirus pandemic.
Sterling rose on Monday, recovering from a three-week low during Asian trading, helped by a weaker dollar, hopes of a Brexit trade deal and expectations of better economic data.
Fears of a second wave of coronavirus infections have increased demand for safe-haven assets, driving the U.S. dollar on Friday to its best weekly gain in a month.
Sterling was on track for its worst week since mid-May after fresh data on Friday showed government borrowing had hit record highs, more evidence that the coronavirus-stricken economy was a long way from recovering.
The U.S. dollar strengthened on Thursday as concerns about a rise in new coronavirus cases globally and higher-than-expected U.S. unemployment claims drove demand for the safe-haven currency.
Sterling sank against the dollar and euro on Thursday, falling more than 1% against both after the Bank of England increased its bond-buying programme by 100 billion pounds ($125 billion) to bolster the coronavirus-hit economy.
The U.S. dollar was slightly higher on Wednesday afternoon as evidence of a surge in coronavirus cases in some U.S. states and in Beijing sent investors into safe-haven assets.
Sterling weakened slightly on Wednesday after data showed inflation in Britain fell last month to its lowest level since June 2016 as the coronavirus pandemic sucked demand from the global economy and caused oil prices to tumble.