Fluctuating Safe Haven Demand Enough to Keep GBP/USD at Lows ...từ IqraFx

29 Jun 2020, 21:11 · Lượt xem 709

After markets opened this morning, the Pound to US Dollar (GBP/USD) exchange rate briefly jumped. Much like last week though, resilient safe haven demand and a lack of strong support meant GBP/USD was unable to sustain this advance attempt, and the pair fell again. Last Week: Safe Haven Demand Fluctuates but Sterling Weakness Persists The Pound to US Dollar exchange rate spent most of last week trending higher. This was due to global hopes for recovery from the coronavirus pandemic as well as US economic concerns, limiting the US Dollar’s appeal as a safe haven. However, global coronavirus ‘second wave’ fears have continued to rise due to a spike in cases. As a result, safe haven demand has been gradually rising and rising. Even with the US coronavirus outlook especially bad, the US Dollar is still benefitting from market demand for safe havens. This, as well as a lack of support for Sterling amid coronavirus and Brexit fears, is keeping the Pound to US Dollar exchange rate from advancing. Three Things to Watch For This Week Global Coronavirus Developments The global number of coronavirus deaths has risen beyond 500,000, and fears of a ‘second wave’ are surging. Unless global governments ramp up efforts to prevent a ‘second wave’, safe haven demand could surge higher and boost the US Dollar. Brexit Developments UK-EU Brexit negotiations are set to continue this week. However, unless there are any notable developments, the Pound may only be in for further Brexit weakness. Fed Meeting Minutes The biggest item on this week’s calendar is the Federal Reserve meeting minutes report, due Wednesday evening. If the Fed is perceived as more dovish than expected on the coronavirus outlook, the US Dollar’s appeal could be limited. GBP/USD Outlook While many key UK and US ecostats are due for publication this week, market shifts in coronavirus and risk-sentiment will remain the most influential things for Pound to US Dollar exchange rate movement

Josh Jeffery

Tuyên bố miễn trừ trách nhiệm: Nội dung trên chỉ đại diện cho quan điểm của tác giả hoặc khách mời. Nó không đại diện cho quan điểm hoặc lập trường của FOLLOWME và không có nghĩa là FOLLOWME đồng ý với tuyên bố hoặc mô tả của họ, cũng không cấu thành bất kỳ lời khuyên đầu tư nào. Đối với tất cả các hành động do khách truy cập thực hiện dựa trên thông tin do cộng đồng FOLLOWME cung cấp, cộng đồng không chịu bất kỳ hình thức trách nhiệm nào trừ khi có cam kết rõ ràng bằng văn bản.

Website Cộng đồng Giao Dịch FOLLOWME: www.followme.asia

Ủng hộ nếu bạn thích