GBP/USD refreshes weekly high amid reopening optimism, US PMI data

• GBP/USD trades above 1.3880 for the first time after June 29.
• The US dollar remains muted following the NFP data released in the previous week.
• The sterling makes efforts to make a comeback backed by upbeat economic data and optimism on the economy reopening.

GBP/USD locks in some fresh gains on Tuesday in the Asian session. After testing the low of 1.3731 on Friday, the pair rebounded sharply in three days to touch the intraday high near 1.3890.

At the time of writing, GBP/USD is trading at 1.3886, up 0.30%  for the day.

The US Dollar Index (DXY) moves lower toward 92.10 with 0.08% losses for the day. The greenback remains sluggish since the beginning of the July post-NFP data. 

Investors assess the US job data is not strong enough to alter the Fed’s current ultra-accommodative monetary policy stance. FOMC Minutes of Meeting on Wednesday could reflect the light on the details of the policymakers approach on future guidance on interest rates and growth outlook.

On the other hand, the sterling benefitted from the optimism arising out of the unlocking news. UK Prime Minister Boris Johnson has reconfirmed his plan to lift most of England’s remaining COVID-19 restrictions by 19th July. The final announcement will come on 12th July. 

The UK Prime Minister showed his confidence that the accelerated vaccination program would combat the hospital admissions if cases rise after relaxing all the restrictions.

 Meanwhile, UK Housing Secretary Robert Jerick said rules in place, such as the mandatory face mask, are set to become “ personal choice”.

On the economic data front, The IHS Markit/CIPS UK Composite PMI came at 62.2 in June, above the market expectations at 62.9.

In the latest development, Taskforce on Innovation, Growth and Regulatory Reform(TIGRR), commissioned by the UK Prime Minister, released the blueprint for the post-Brexit deregulation program aimed at removing regulatory obstacles to the corporate and financial sector.

As for now, investors await the release of the US ISM Service Purchase Manager Index (PMI) to gain some fresh trading impetus.

GBP/USD additional levels