we see a lot of indecision right now, and when writing this IG clients (IG is a broker) are exactly 50% long. why i think we are seeing this indecision is (maybe obvious) that nobody knows what will happen next. I heard we will de a decrease of 4% of GDP of gbp this year (estimated),also brexit won't take place this year either with leaves UK with a unclear relationship wit EU, and we know the UK has quite a lot of dept which will has increased and will increase if we see further problems with the virus. Everything I wrote is because of the virus, so that is what literally drives the markets right now. Therefore if we see further problems with the virus in the UK we are going too see even more problems with the economy, more people losing jobs-which will lead too more problems with the economy. And if this happens this currency should drop in value. But if we instead see an decrease in virus cases we could see some hope for the economy and therefore the value of the gbp should increase. This is from an article: ¨On the other hand, comments by Neil Ferguson, a Professor at Imperial College advising the UK government said that the UK epidemic is slowing and that antibody tests are the next step. His comments have raised hopes that the UK could be back to work sooner.¨ article: www.fxstreet.com/ana...wngrade-202003301339
So my conclusion is as it always been the past weeks, more virus=lower value of the currency. less virus=hope in the currency and therefore should be more expensive over time
So my conclusion is as it always been the past weeks, more virus=lower value of the currency. less virus=hope in the currency and therefore should be more expensive over time