GBP/USD: Clashes around Brexit and worries about rising UK cases to slow the advanceNEWS |
5/25/2021 9:33:37 AM GMT | By FXStreet Insights Team
Sterling is struggling to take advantage of dollar weakness and that may indicate an inability to reach higher ground. There are two reasons for the pound s issues, according to FXStreet’s Analyst Yohay Elam.
Sterling s rise hobbled by Brexit friction, rising UK covid cases
“Brexit refuses to die, and with it, the frictions around the Northern Ireland protocol. European Commission President Ursula von der Leyen stated there can be no changes to the agreement signed, angering London. UK Prime Minister Boris Johnson s insistence that there will be no customs checks on the Irish Sea contradicts the Withdrawal Agreement. Both sides still need to settle regulations related to the services sector.”
5/25/2021 6:42:27 AM GMT | By FXStreet Insights Team
EUR/USD is trading above 1.22, benefiting from dollar weakness and Europe s reopening. Is new energy from a long weekend enough for a breakout? Euro eyes a jump above tough resistance at 1.2245, Yohay Elam, an Analyst at FXStreet, reports.
Europe s improving covid statistics and upbeat business sentiment may keep its bid
“As long as the Fed remains calm, the printing presses continue working – the bank buys $120 billion in bonds every month – and weakening the dollar. An interest rate hike is still beyond the horizon. Chicago Fed President Charles Evans and Randal Quarles are scheduled to speak later in the day.”
5/20/2021 11:36:10 AM GMT | By FXStreet Insights Team
GBP/USD is hovering above 1.41 as the pair tries to recover from the Fed s subtle hint of tapering bond buys. However, virus variants risk the UK s reopening and weigh on sterling, Yohay Elam, an Analyst at FXStreet, reports.
Freedom Day may be less free than anticipated
“The UK may dilute plans to relax COVID-19 rules on June 21 due to worries about the India variant. The new worries about delaying the reopening come despite reassurances that existing vaccines cope with the variant. UK Prime Minister Boris Johnson seemed calm about the matter, but Health Minister Matt Hancock s concerns may now take over. A limited reopening means less economic activity.”
5/20/2021 1:32:45 PM GMT | By FXStreet Team
GBP/USD: Virus variants concerns to hobble sterling
GBP/USD is hovering above 1.41 as the pair tries to recover from the Fed s subtle hint of tapering bond buys. However, virus variants risk the UK s reopening and weigh on sterling, Yohay Elam, an Analyst at FXStreet, reports.
“The UK may dilute plans to relax COVID-19 rules on June 21 due to worries about the India variant. The new worries about delaying the reopening come despite reassurances that existing vaccines cope with the variant. UK Prime Minister Boris Johnson seemed calm about the matter, but Health Minister Matt Hancock s concerns may now take over. A limited reopening means less economic activity.” Read more.
May 19, 2021 13:41 GMTFXStreet News
GBP/USD has been retreating as the US dollar gains some ground. But as sterling exits overbought conditions, cable is ready to rally with some Fed fuel, FXStreet’s Analyst Yohay Elam briefs.
Britain’s progress against the virus and Fed’s dovishness to push cable to higher ground
“Later on Wednesday, the Fed publishes its meeting minutes from the latest decision back in April – and it will likely show that the voices calling for tapering bond-buying remain far and few between. The document may convince investors that the current pace of dollar printing is set to continue for longer, devaluing the currency and pushing back the timeline for raising rates.”