Cryptocurrency recovers quickly after sharp recovery from monthly lows
The cryptocurrency market has been given a breather since Wednesday morning, as the prices recovered…
GBPUSD started the week’s trading, achieving gains in the morning of UK forex market transactions, and it recorded the second consecutive daily rise and its highest level since 2018. These broad gains come thanks to the large decline in the US dollar, in addition to increasing hopes of reducing operations procedures. The closure, which is the third since the beginning of the Coronavirus pandemic.
GBPUSD traded at $ 1.3913, the highest in three years, up by 0.45% from today’s opening session at $ 1.3851.
The British pound recorded the fifth consecutive weekly gain after the close of trading on Friday, hitting a 0.9% gain, marking the longest wave of weekly gains since last November.
The rise in the pound sterling during the past days supported the central bank’s statements towards negative interest rates, as he indicated that banks need at least six months to switch to the negative interest level, which reduced expectations of lowering interest rates to less than zero in the coming months.
The royal currency has been a major winner against the ailing dollar this month, as the launch of the UK’s coronavirus vaccination program raised hopes that its economy will be able to recover more quickly than its European counterparts.
Last week, the Office for National Statistics (ONS) published the latest estimates for fourth-quarter GDP numbers in the United Kingdom, and data showed that the British economy grew by 1.0% in the fourth quarter after recovering by 16.1% in the third quarter, and despite that, the economy was less than 7.8% than it was in the same period in 2019.
For the year 2020, the British economy contracted by 9.9%, which is the worst contraction in more than 300 years, and despite this, it was less than its theory in other countries due to its dependence on services.
The Office for National Statistics also published mixed figures for industrial and manufacturing production during the month of December. Industrial production increased by 0.2%, down from the previous month’s 0.3%, and manufacturing production increased by 0.3%.
More data showed that the construction sector also suffered in December, dropping 2.9% from the previous month and 3.7% year over year, mostly due to lockdown measures put in place by the government.
Analysts believe that this weakness continued in January due to the nationwide lockdown, so it may increase pressure on the Bank of England to push interest rates into negative territory.
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.
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