- Brexit related news triggers some volatility around GBP / USD on Wednesday.
- Signs of progress in the Brexit negotiations continue to prop up the British pound and help limit losses.
- Nervousness over COVID-19 and falling US bond yields weigh on the USD and further extend some support.
The pair GBP/USD has had good price movements in both directions during the European session on Wednesday and now appears to have stabilized just above the 1.3250 level.
The pair has extended its recent bullish move and has spiked to fresh two-month highs, above the round 1.3300 level, during the first half of trading action on Wednesday. However, the GBP / USD pair has started to lose momentum and has fallen around 75 pips in reaction to the news that Brexit negotiators will miss the mid-November deadline to reach an agreement.
However, due to the fact that progress is being made, Investors remain optimistic about the possibility of a last minute compromise on key points. It is worth reporting that the Daily Express Brussels correspondent Joe Barnes tweeted this Wednesday that British negotiators have accepted the solution for the establishment of goods and services, but not the level playing field and fishing.
This, in turn, has continued to prop up the British pound and extended some support to the GBP / USD pair. Apart of this, a softer tone around the US dollar has done even more to limit deeper losses in the pair amid recent positive development in COVID-19 vaccine trials.
Concerns about the continued rise in new infections in the United States and the imposition of stricter restrictions in several US states have revived hopes for substantial fiscal stimulus. to support the economy. This, coupled with falling US Treasury yields, has kept USD bulls on the defensive during the first half of Wednesday’s trading action.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
