GBP/USD Exchange Rate Sinks as PM Warns Against Lifting Lockdown Too Soon
The Pound to US Dollar (GBP/USD) exchange rate dropped by -0.4% this morning, with the pairing now trading about $1.244.
Sterling was in for a struggle after the PM stated raising the UK’s lockdown prematurely could result in a ‘second wave’ of Covid-19. It has left many GBP investors worried as the market is badly compromised.
The Pound (GBP) also failed to gain from the optimistic information concerning the UK’s fewest deaths in weeks.
With Spain and France also regaining strength, that has shed some light at the end of the tunnel. As a consequence of Europe’s progress in recent weeks, several Pound investors expect that facets of the UK’s national lockdown may be facilitated in the forthcoming time.
US Dollar (USD) Rises as NY Mayor Says State Beat Covid-19
USD continues to rise this week as Mayor of New York Bill de Blasio states that the country is ‘on the pandemic’s flip hand’. With deaths and the rate of diseases falling in New York.
Saturday also saw Trump declare that many nations had taken definite actions to start a safe, slow, and phased opening. Despite warnings from several governors to wait till additional testing was made accessible.
US Dollar (USD) investors are also becoming more and more optimistic over Gilead Sciences’ promising coronavirus therapy. As stated by the University of Chicago Medicine, the new medication, Remdesivir, revealed ‘rapid recoveries in fever and respiratory symptoms’.
Stock markets jumped onto the information that there might be a possible cure for the coronavirus in the near future.
But if international market sentiment continues to get better from the light of decreasing Covid-19 cases, we will maybe see the safe-haven ‘Greenback’ drop some of its earnings.
GBP/USD Forecast: Will the ‘Greenback’ Sink on Enhancing Risk Sentiment?
US Dollar (USD) investors will probably be anticipating the publication of March’s US Chicago Fed National Activity Index. The ‘Greenback’ advantage on increasing concerns for the international markets if the gauge slumps due to coronavirus impact on the US market.
The GBP/USD exchange rate will remain sensitive to the UK’s Covid-19 improvements during the week. Together with any signs, the number of deaths and instances rising to leave Sterling traders worried for the British economy’s future.