📍 GBPUSD is trying to correct on Thursday but the COVID-19 pandemic and Brexit put too much pressure. The British Pound remains weak against the USD on Thursday despite today’s slight attempts to correct. The current quote for the instrument is 1.275xx. The Pound remains under pressure from two very negative factors, the coronavirus, which is reviving in the United Kingdom and not going to give up, and Brexit, London’s persistent and annoying problem. The increase in the number of new coronavirus cases in the United Kingdom gives reason to believe that the second wave of the pandemic is already here. If the speed of the disease spread remains the same as today, the government may have to introduce new quarantine restrictions as early as in October.
📍 Of course, it’s awful for both the Pound and the British economy. As for Brexit, it’s getting more and more complicated as time goes by. Talks with the European Union are stuck and, in this light, the British Prime Minister Boris Johnson is very aggressive in lobbying for a bill, which will allow the United Kingdom to unilaterally abandon the performance of some articles of the agreement that was approved in January. As a matter of fact, London is trying to rewind the time but the EU, which is quite sick and tired of all problematic initiatives coming from the UK, is highly unlikely to let it happen. Most likely, The United Kingdom will once again have to ask for an extension of the transition period and that’s a serious stress for the Pound.
📍 Technical Point of View The US dollar gains on Thursday, after signs of an economic slowdown in Europe and the US as a concern of the second wave of virus infections.
📍 The Euro already gets weak by strict lockdowns reimplementing again concerns and today release of German business sentiment.
📍 Pound weakness on Strong US dollar concerns and Today speech led by UK chancellor Sunak on to protect jobs and rising COVID 19 infections.
📍 US dollar strengthens by FED raising concerns on for more financial support for the US economy, but the US Congress makes it unlikely to help such support.
📍 Fears of the second wave of coronavirus in Europe are also supported USD and Investors turned backed to healthier assets.
📍 The US dollar expects to surge in spike as second wave and FED talks on the economy is worsens if Policymakers fails to deliver stimulus measures.
Until the Next time.
Ridethemacro
📍 Of course, it’s awful for both the Pound and the British economy. As for Brexit, it’s getting more and more complicated as time goes by. Talks with the European Union are stuck and, in this light, the British Prime Minister Boris Johnson is very aggressive in lobbying for a bill, which will allow the United Kingdom to unilaterally abandon the performance of some articles of the agreement that was approved in January. As a matter of fact, London is trying to rewind the time but the EU, which is quite sick and tired of all problematic initiatives coming from the UK, is highly unlikely to let it happen. Most likely, The United Kingdom will once again have to ask for an extension of the transition period and that’s a serious stress for the Pound.
📍 Technical Point of View The US dollar gains on Thursday, after signs of an economic slowdown in Europe and the US as a concern of the second wave of virus infections.
📍 The Euro already gets weak by strict lockdowns reimplementing again concerns and today release of German business sentiment.
📍 Pound weakness on Strong US dollar concerns and Today speech led by UK chancellor Sunak on to protect jobs and rising COVID 19 infections.
📍 US dollar strengthens by FED raising concerns on for more financial support for the US economy, but the US Congress makes it unlikely to help such support.
📍 Fears of the second wave of coronavirus in Europe are also supported USD and Investors turned backed to healthier assets.
📍 The US dollar expects to surge in spike as second wave and FED talks on the economy is worsens if Policymakers fails to deliver stimulus measures.
Until the Next time.
Ridethemacro
