On Friday, the British pound was higher than the Australian dollar.
The pound sterling ended the week in an optimistic tone as political uncertainty for the United Kingdom was reduced. Prime Minister Boris Johnson appears to have gone through the worst of his coronavirus symptoms after being transferred from intensive care on Thursday evening.
The GBPAUD rose 14 pips (+ 0.08%) to 1.9654 at 3 p.m. GMT.
The currency pair was far from overnight highs and while the currency was higher on Friday, it fell significantly on Thursday. Weekly losses totaled -3.88% after falling -1.09% Thursday.
The British pound stimulated by the release of intensive care from Boris Johnson
Prime Minister Boris Johnson was withdrawn from intensive care on Thursday evening, which helped limit a sharp drop in his exchange rate with the Australian dollar. The Prime Minister’s hospitalization and his subsequent installation in intensive care has created an additional layer of uncertainty in the political response to the pandemic. If the situation had worsened, it would have damaged the confidence of the country.
The Prime Minister will likely stay in the hospital for days, if not weeks. In his absence from Downing Street, Foreign Minister Dominic Raab announced the extension of the British foreclosure.
Australian dollar hits 15-day high
Australian authorities have doubled their strict social distancing measures by closing the beaches during Easter weekend, usually the last big beach party before the warm weather begins to cool in Australia.
The plight of the Australian currency has improved in the past two weeks, with the country reporting that in the past 10 days, except one, new infections have fallen.
The Aussie had a big week, much like the asset classes perceived as riskier. This week, the S&P 500 rose 12.1% for its best weekly return since 1974. The Dow Jones climbed 12.7% for one of its highest weekly gains ever.
Next week, China will announce GDP growth in the first quarter on Friday, data that could affect the Australian dollar, which is often used as a proxy for the Chinese economy.