GBPUSD fell due to Coronavirus cases increasing in Britain

Mohammed Abdelkhalik
September 21, 2020

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GBPUSD Outlook: 21st September 2020

GBPUSD retreated in the European market on Monday to continue its losses for the second day in a row, moving away from the highest level in a week, due to the high cases of Coronavirus in the United Kingdom, and the British government’s thinking about imposing a health ban again, Which threatens to destroy any signs of economic recovery in the country.

GBPUSD fell by more than 0.6% to $ 1.2850, and the opening price of the day was at $ 1.2933, and the highest level was at $ 1.2966.

GBPUSD ended Friday’s currencies trading, down about 0.5%, in the first loss in the past five days, due to corrections and profit-taking from the highest level in a week at $ 1,3007.

GBPUSD Outlook - 21st September 2020

In terms of last week’s ATFX forex trading, the royal currency, the British Pound Sterling, rose by 0.9% against the US currency, in the first weekly gain in the last three weeks, thanks to the retreat of the US dollar against a basket of major and minor currencies.

GBPUSD fell after Coronavirus cases increasing in the UK

According to official data about a week old, cases of Covid 19 virus in Britain have increased by at least 6,000 cases per day, and hospital admissions are doubling approximately every eight days, with the disease detection system faltering.

To face these developments, British Prime Minister “Boris Johnson” is considering imposing a health ban again in the country, which threatens to destroy any signs of economic recovery and return millions to isolation.

The Bank of England said last week that it is closely looking into how to implement negative interest rates, and this has led to an acceleration of cases of Coronavirus in the country, with high unemployment rates and the risks of Britain leaving the European Union.

On the other hand, Democratic candidate for the US presidential elections, “John Biden,” said that any trade deal between Britain and the United States should be “conditional” on respecting the peace agreement in Northern Ireland, and not violating the Irish border issue in the “Brexit” negotiations with the European Union.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.