Sterling on track for first weekly profit in month

Sterling fell in European trade against dollar for second straight session on profit-taking while heading for the first weekly profit in a month, with Boris Johnson's government preparing to expand spending to propel the economy from its current slump. 

GBP/USD fell 0.2% to 1.2437, after closing down 0.1% yesterday, the first loss in three days away from week highs at 1.2529. 

The dollar index rose 0.1% on Friday for the second session on haven demand after coronavirus cases in the US hit another record high of 73 thousand in a single day. 

US-China tensions are mounting as well after the Senate imposed sanctions on banks dealing with Chinese officials responsible for overseeing the new security law in Hong Kong. 

The pound rose 0.8% this week on track for the first weekly profit in a month, with Boris Johnson's government preparing to expand spending in the country to buoy the Covid 19-hit economy. 

Some analysts expect the pound to rise by 4% in a year time if the government managed to reach a deal with the EU before the transition period ends by December 31.