GBP / USD remains under pressure below 1.3450 amid USD strength and Brexit concerns

Get real time updates directly on you device, subscribe now.

  • GBP / USD attempts a bounce, but the firmer USD limits the rally.
  • The EU asks the Brexit minister to stop “political positions” on the Iralnda del Norte protocol.
  • BOE Governor Andrew Bailey downplays concerns about inflation, risk trends and Brexit.

The GBP / USD has attempted a tentative recovery towards 1.3450 during the Asian session on Monday, as risk sentiment improved. However, at the time of writing, the hike looks elusive amid a stronger US dollar and lingering Brexit concerns, with the pair trading near daily lows at 1.3430.

The pair is trying to hold its ground after the improved sentiment, with Asian indices positive after a negative open, while S&P 500 futures are up 0.31% for now.

Markets appear to be looking beyond COVID-19 concerns in some European countries, as expectations of a faster Fed tightening amid a strengthening US economy sustains sentiment. Nevertheless, any further rally in the pair looks elusive as the US dollar clings to recent gains along with a rebound in Treasury yields.

On Friday, the US dollar rallied strongly to retest the 16-month highs against major currencies after a wave of risk washed over financial markets for the lower. renewed concerns about a possible blockade in Europe, before the contagion of the coronavirus. The pair fell to 1.3408 on rising demand for the safe-haven dollar.

Meanwhile, on the Brexit front, the Vice President of the European Commission, Maroš Šefčovič, accused the British Minister for Brexit, David Frost, of “political stance” on the Northern Ireland protocol, citing a “greater urgency” required in the negotiations.

Investors digest comments over the weekend from Bank of England (BoE) Governor Andrew Bailey, who said that inflation could be “higher for longer”But there is also the possibility that it will not be as persistent as you feared.

In today’s economic calendar, the publication of existing home sales data in the United States stands out. However, broader market sentiment, Brexit news and the dynamics of the US dollar will remain the main catalysts for the pair.

GBP / USD additional levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.