Economy News Shares

The Pound Decreases On New COVID Lockdowns

Sponsored

The U.K. ended up being the nation that is latest to impose fresh, strict lockdowns in order to curb a fresh strain for the virus. This led to European neighbors, including France, Germany, Italy, the Netherlands, Ireland and Belgium closing their boundaries to travelers, and perhaps cargo from the U.K. Other nations are also mulling similar bans.

“The lockdown news together with stalemate on Brexit is maintaining industry stressed buck that is is essentially being driven by the move reduced in the pound,” National Australia Bank (OTC:NABZY) (NAB) senior currency strategist Rodrigo Catril told Reuters.

Any risk of strain that is rapidly spreading causing security, overshadowing the news headlines that the U.S. Congress reached a deal for the $900 billion COVID-19 help package, because of the House of Representatives to vote regarding the package later in day, accompanied by the Senate.

The foodstuff and Drug management also granted emergency use approval for Moderna Inc’s (NASDAQ:MRNA) vaccine mRNA-1273 within the weekend.

The USD/JPY pair inched down 0.02% to 103.28.

The AUD/USD pair lost 0.40% to 0.7593 plus the NZD/USD pair ended up being down 0.34% to 0.7101. The riskier currencies that are antipodean in the very beginning of the week as investors hurried towards safe-haven assets. Australia’s city that is largest of Sydney is also battling a fresh COVID-19 outbreak.

The USD/CNY pair ended up being up 0.22% to 6.5495.

The GBP/USD pair slid down 1.05% to 1.3377 over the U.K. lockdown news.

Meanwhile, speaks for the post-Brexit trade cope with Europe (EU) will continue later within the, but both sides didn’t reach an understanding day. The EU’s fishing rights in UK waters is still a sticking that is particular, with U.K. Health Minister Matt Hancock on Sunday calling them “unreasonable demands” that ought to be dropped by the bloc.

The possibility of the U.K. leaving the EU with no deal is rising with all the clock ticking towards the end-of-year due date.

However, NAB’s Catril remained careful of the greenback, although he forecasted that the Pound could climb up to $1.50 in 2021 should a Brexit that is last-minute emerge.

“We still can’t get our minds round the proven fact that a trade deal will collapse because of fisheries … overall I would personally state that risk positivity driven by vaccines and stimulus, and the undeniable fact that financial stimulus needs to be funded with a large amount of borrowing in the U.S., nevertheless paints a picture of buck weakness for 2021,” Catril added. The U.K. ended up being the nation that is latest to impose lockdowns.

Sponsored
Avatar

Billy Houghton

Billy Houghton is a top acclaimed and sought-after commodities futures trading expert. The expertise and in-depth level of analysis that is offered by Billy Houghton is what has managed to put him at the stage of being the top ranked author for MetaNews among multiple different categories. Throughout his career, Billy has specifically spent over three decades on Wall Street fine-tuning his skills, which included over two decades at a trading desk. In more recent times, specifically the last decade, Billy has been researching algorithms of AI in futures trading, and believes they are the future of trading.
Follow Me:

Related Posts