The British Pound was seen outperforming ahead of the weekend, registering a one-week high against the U.S. Dollar and further hard-fought gains against the Euro meant it was closing in on a one-month best against its cross-channel counterpart.
The British Pound is being forecast to decline once more by investment bank JP Morgan who says the UK still remains exposed to global capital flows and the market fallout from the coronavirus pandemic is not yet over.
The British Pound was seen giving back some of its advances against a host of different currencies on Friday, with the move lower taking some of the shine off what has been a relatively strong week for the UK currency.
The fading shortage of dollars in the global financial system thanks to a series of interventions by the U.S. Federal Reserveappears to be a critical driver behind an ongoing recovery in the value of the British Pound, according to analysts.
The British Pound extended a late-March rally into the final session of the month by notching up gains in excess of a percent against the Euro and commodity Dollar bloc while also pushing above 1.24 against the U.S. Dollar.
The British pound advanced against the Euro and the majority of the world's largest currencies over the course of the past 24 hours but fell back against a resurgent U.S. Dollar amidst an environment of heightened volatility due to the coronavirus economic crisis.
The British Pound starts the new week close to the multi-day highs where it ended on Friday, with markets digesting news that the UK's sovereign debt was downgraded by ratings agency Fitch over the weekend.