- GBP/USD struggled to maintain early gains
- Covid woes kept bulls on the sidelines.
- A mild rise in USD demand added pressure on the major.
GBP/USD pullback 50 pips from the daily high and trades at the lower end of the dailly traded range.
The British pound was weighed down by Friday’s weaker than forecast Retail Sales figures and PMI prints raising concerns over the health of the UK economy.
Fears that the new UK covid variant was not only highly infectious but perhaps more deadly kept the pressure on the Pound. Raising covid fears drove demand for the safe haven US dollar.
Expectations that a huge US fiscal stimulus will boost the global economic recovery could cap US Dollar gains. Therefore it would be prudent to wait for some strong follow-through selling, possibly below Friday’s swing lows 1.3635 region selling the GBP.
There is no major market moving data from the UK or US. Covid developments will play a dominant role in driving market risk sentiment and drive the USD price dynamics. A speech by the BoE Governor Andrew Bailey could also be in focus.
The FOMC monetary policy decision on Wednesday will be a key focus. The US Q4 GDP report on Thursday will also be in focus.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.