GBP price, FTSE news and analysis:
- GBP/USD is stability to trend lower, suggesting some-more waste to come, as bearish elemental factors raise up.
- There are few signs nonetheless possibly of a postulated convene in a FTSE 100, that continues to trade broadly sideways.
GBP/USD underneath a cosh
On Brexit, a deadline for a UK to ask for an prolongation of a transition duration over a finish of this year has now upheld and nonetheless face-to-face talks between a UK and a EU are ongoing there are still few signs of progress.
Meanwhile, final information expelled Tuesday showed a UK economy shrank by 2.2% quarter/quarter in a initial 3 months of this year, a biggest dump in GDP given 1979. The contraction was caused predominantly by a UK’s lockdown to opposite a widespread of Covid-19, and a latest news on that front is bad too. A new lockdown is being imposed on a city of Leicester, where there has been a flare-up in novel coronavirus infections.
The repairs to a UK economy from a pestilence has swayed Prime Minister Boris Johnson to emulate a New Deal policies of a depression-era US President Franklin D. Roosevelt, accelerating £5 billion of spending on infrastructure projects. However, this has unsuccessful to lift GBP/USD, that continues to trade within a downward-sloping channel on a charts.
GBP/USD Price Chart, Daily Timeframe (March 2 – Jun 30, 2020)
Chart by IG (You can click on it for a incomparable image)
Trading in currencies generally is approaching to be flighty this eventuality due to month-end and quarter-end flows, that will also expected impact a batch markets. The FTSE 100 index of heading London-listed stocks, that has traded broadly laterally over a past dual weeks, was down by around 0.5% in early trade Tuesday.
One other eventuality to watch out for this eventuality will be a debate by Andy Haldane, a Bank of England arch economist, on a “the second quarter”, that is due to be published during 11am London time (1000 GMT).
Don’t skip a latest Trading Global Markets Decoded podcast from DailyFX with special guest Jim Rogers. He talks about a US economy, gold a US Dollar and most more.
— Written by Martin Essex, Analyst and Editor
Feel giveaway to hit me on Twitter @MartinSEssex