- GBP / USD is cutting gains on Wednesday, although it remains above 1.3200.
- The pound loses ground amid the strength of the USD and the fading of hopes for a Brexit deal.
Sterling’s reversal from two-month highs above 1.3300 has found support at 1.3190 during the US trading session on Wednesday, to return above 1.3200. However the GBP/USD it remains negative on the daily charts, weighed down by a much stronger US dollar and the fading of hopes for a Brexit deal.
The pound retreats against a stronger USD
The US dollar is trading higher against its main rivals on Wednesday, and the market is enjoying optimism about the impact of a COVID-19 vaccine and weighing up details such as production and distribution problems as coronavirus infections continue to rise in the US. . and Europe.
Beyond that, previous hopes for an imminent Brexit deal have been dampened by comments from an Irish Minister stating that negotiators are likely to miss their mid-November goal of closing a trade deal.
The dollar appears to have ignored the safe haven status of recent months and is trading higher on Wednesday, in parallel with the major stock indices. Rising US Treasury yields could be the main reason for this change in trend, as the 10-year Treasury yield has risen to 0.97%.
Credits: Forex Street
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