GBP/USD is trading below 1.2650, as UK jobless claims rise only 528.9K, more than expected. On the other hand, the unemployment rate beat with 3.9%. The dollar is on the back foot amid hopes for fiscal and monetary stimulus.
GBP/USD has advanced on the PM's optimism and also as the US Federal Reserve announced it would buy corporate bonds in markets – and also from firms. The Fed's move is not a game-changer, as it had already laid out the plan back in March, but it then proposed buying Exchange Traded Funds rather than direct buying. Nevertheless, stocks jumped and the safe-haven dollar was sold off.