GBPUSD rises due to renewed optimism about “Brexit”

Mohammed Abdelkhalik
October 5, 2020

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GBPUSD Weekly Outlook: 5th October 2020

GBPUSD rose during forex trading in the United Kingdom on Monday, due to renewed optimism in the markets that an agreement could be reached between the United Kingdom and the European Union on reformulating future relations between the two parties after the implementation of the “Brexit”.

GBPUSD had received support last week after news of further progress in Brexit talks between London and Brussels, and expectations indicate that progress in the negotiations will continue in this week’s round.

GBPUSD Weekly Outlook - 5th October 2020

The British Prime Minister, “Boris Johnson” and the President of the European Council, Ursula von Derlin, agreed to intensify Brexit talks to bridge the gap in viewpoints and try to reach an agreement that would prevent London’s inflexible exit from the united bloc.

On the other hand, economic data showed that the British services PMI rose to 56.1 points in September from 55.1 points in August.

In terms of trading, GBPUSD rose by 20:50 GMT by 0.4% to 1.2983, and the highest price was recorded at 1.2992, while the lowest price was at 1.2900.

GBPUSD rose due to the USD decline

The dollar fell against most of the major currencies during trading on Monday, amid news of an improvement in the health of US President “Donald Trump”.

Last Friday, Trump announced that he and his wife were infected with the “Corona” virus, and they were placed under quarantine in the White House.

Later, President Trump was transferred to the Walter Reed Military Medical Center as a precaution due to concerns related to the impact of the Coronavirus on Trump’s health due to his old age and excess weight.

However, medical sources confirmed that Trump’s condition is continuously improving and that he is responding to the treatment protocol.

However, Secretary of State “Mike Pompeo” stressed that the US administration is prepared for all developments and scenarios.

US economic data revealed that the services PMI rose to 57.8 points last month, from 56.9 points in August.

In terms of online trading, the dollar index fell (against a basket of major currencies) by 19:37 GMT, by 0.3% to 93.5 points, and recorded the highest level at 93.8 points and the lowest level at 93.3 points.

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.