Sterling rises after UK's GDP data
The British Pound rose against most of its counterparts on Wednesday, after the release of the Britain's GDP data.
Data showed today that the final reading of the UK's GDP fell 19.8% in the second quarter, beating expectations of -20.4%.
While the final reading of the US GDP decreased 31.4% in the second quarter, better than forecasts of -31.7%.
The British current account reading posted a deficit of 2.8 billion pounds, more than forecasts of 1 billion pounds.
As of 20:50 GMT, GBP/USD rose 0.5% to 1.2918, after the pair hit a high of 1.2942, and a low of 1.2806.
EUR/GBP fell 0.4% to 0.9086, with a high of 0.9158 and a low of 0.9067.
At 12:30 GMT, the Canadian economy released its reading for the retail sales index, which fell by 0.4% in August, worse than forecasts of 1%, while the index rose by 0.6% in July. This data is considered negative for the Canadian dollar.
EUR/USD rose on Friday after a hiatus from gains yesterday, on track for the largest weekly profit in three on hopes for US Covid relief. EUR/USD rose 0.25% to 1.1846. after closing up 0.3% yesterday, the first loss in five days on profit-taking. Across the week, the euro is up 1.1% so far on track for the largest weekly profit since July. The gains came amid improving sentiment in the market with hopes increasing for US relief package before the November elections. On the Covid front, the World Health Organization reported 41.1 million global cases so far of the coronavirus, with the death toll standing at 1.128 million.
Sterling fell in European trade away from six-week highs against dollar on profit-taking, before talks are resumed between UK and EU on Brexit. GBP/USD fell 0.25% to 1.3116, after closing up 1.6% yesterday, the largest gain since March 27. The largest profit in seven months came as the dollar plunges while UK-EU trade talks take a more positive turn. The dollar index rose 0.2% on Thursday, the first profit in five days away from seven-week lows at 92.47. The Guardian reported a resumption of UK-EU trade talks on Thursday and through the weekend to reach a final deal in the last few weeks of the transition period. Both sides hope for compromise before transition ends on December 31.