British Pound Facing Bearish Pressure Against the US Dollar

  • 24
    April, 2020

    While the GBP has been on a bullish move, today showed the currency’s weakness against the USD. The GBP, which has been in a small short term uptrend, suddenly broke the trend with a sharp downward movement. However. this does not exactly signal a continuous downward movement. There are a few other fundamental factors that may affect the price.

     

    Possible Lockdown Exit

    UK construction companies Bovis and Taylor Wimpey are planning to study the possibility of opening up their operations again starting next week. This is due to opinions about the Coronavirus infection levels already peaking. These 2 construction companies are not the only ones that may open up their operations again.

    Car companies Aston Martin and JLR may also start production of cars again. The move of these companies may also prompt other businesses from across industries to carry suit. Also, PM Boris Johnson is already back at Downing Street indicating that he might put a phased exit from the lockdown in his pipeline.

     

    The Current Status of the GBP Against the USD

    The GBP is up against a strong USD which is why the currency was pushed further down. However, the sentiment still remain bullish as the downward movement was stopped short and made a recovery.

    However, it is still to be seen as to what movement the GBP will make in the coming week. The phased exit of the lockdown is sure to be a factor that will affect the movement of price.

     

     

     

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    Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of  a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.

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