- GBP/USD continues yesterday’s strength.
- Cable bulls helped by dollar selling.
- Tier-4 restrictions expanded in the UK
GBP/USD trades 0.42 Percent up at 1.3552 ahead of the London open as US stimulus and Brexit developments assisted the bulls. The USD weakness continued even after reports suggest detecting the first US case of the coronavirus’s new variant in Colorado.
The UK parliament will put to the vote the Brexit deal today and markets expect no hiccups. Nevertheless, the rising pandemic cases in the UK worry the Cable bulls.
In the excerpts of UK PM Boris Johnson’s speech, the newly found trade freedom is highlighted, but only scant mention about the service sector’s losses due to the Brexit deal. The support from the opposition for the deal makes it easy for the PM to push the agreement with the EU through the parliament. The lawmakers will discuss the motion from 09:30 AM onwards until 11:00 PM before a decision is made.
The coronavirus cases have forced UK authorities to extend Tier 04 restrictions to some more areas. Severe measures were considered by ministers to be imposed on southwest England and Cumbria where the mutated virus is gaining ground, but still has a low total number of pandemic cases, Reuters reported. The Telegraph has reported on Monday that Midlands and the North region in England might be put on Tier 4.
US Senate Majority Republican Leader Mitch McConnell initially blocked the bill for hiking the paycheck to 2,000 dollars. Later, it was considered after adding social media companies’ protections and election fraud studies.
The DXY fell to the lowest level since April 2018, while the UK and the US stock futures trades in the green.
The current bull-run in the GBP/USD might end if the pandemic situation worsens in the US and the UK, while a smooth Brexitdeal passage and US stimulus progress will support the bulls.