GBPUSD report

Terry_8

Trader
Mar 23, 2020
252
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GBPUSD under Pressure on Bleak UK Economic Outlook and Brexit Concerns

GBPUSD nosedives to the new five-week low of 1.22034 as investors remain anxious about the UK economy. This was after Chancellor Rishi Sunak expressed overnight that the Britain Economy is going through a dire recession owing to the COVID-19 outbreak. Further, the cable is weighed down by the reports that the ongoing third round of post-Brexit talks between the UK and EU has shown no progress as of now. This has raised the chances that Britain would end the transition period without a deal. Currently, the pair is trading 0.21% lower at 1.22146.

Talking about the previous trading session, bears showed that they are not ready to leave pound anytime soon as investors continued to rush towards the greenback due to its perceived safe-haven status. Traders remained apprehensive that coronavirus cases would spike across the globe due to easing in the lockdown. Further, tensions between the US and China escalated as US Senate presented a bill that would allow Washington to impose tariffs on Beijing. This was meant to hold China responsible for the origin of coronavirus pandemic. Besides, demand for the dollar underpinned after the US Federal Chair Powel ruled out the possibility of negative interest rates in the webinar organized by Peterson Institute for International Economics. Therefore, the pair ended the session at 122241, with a loss of 0.20%.

Going forward, investors would closely listen to the BOE GOV Bailey speech to take cues about the future monetary policy. Later in the North America session, traders will wait for weekly America Unemployment claims and monthly Import Prices from the US economy.

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Source: www.facebook.com/fxviewdotcom/posts/180706126805095
 
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