RationalFX : Sterling had its worst week since mid-May after data releases on Friday showed government borrowing had hit record highs …
Britain’s public debt exceeded economic output for the first time since 1963 which illustrates that the coronavirus has had a damaging impact on the British economy and an economic recovery is a long way away. Further stimulus provided by the Bank of England provided little support for the pound also.
Brexit related risk also continued to weigh down the pound as a lack of progress is impacting sterling. Boris Johnson has told French President Emmanuel Macron that a post trade deal must be concluded by autumn and Angela Merkel also echoed these thoughts.
The dollar rose to its highest weekly gain in a month as fears of a second wave of coronavirus increased demand for safe haven assets like the dollar. With infections rising in the US along with a new outbreak in Beijing, this has raised concerns of another global lockdown.
Source : ETFWorld.co.uk