GBP/USD Outlook: 25th January 2021
GBPUSD witnessed a recovery in the morning of Monday’s trading in the European market, as it boosted investors ’risk appetite to return to riskier assets, amid increasing hopes for the stimulus plans announced by President Biden that would support the US economy. The Coronavirus Vaccine Campaign Over the Weekend Some Support for the Pound.
Online trading investors ’optimism about the $ 1.9 trillion fiscal stimulus plan in the US announced by President” Joe Biden “continues to support their risk appetite, which will significantly contribute to the recovery of the US economy, despite concerns of the Republican Party stalling the deal.
The launch of the UK coronavirus vaccine accelerated on Saturday, with 5.9 million people now receiving the first dose.
GBPUSD fell after weak economic data
GBPUSD fell after the Office for National Statistics (ONS) released weak retail sales numbers in December, as the total volume of UK retail sales increased 0.3% from November, after which sales rose at an annual rate of 2.9%, which is below the average. An estimate of 4.0%.
Core retail sales that exclude volatile food and energy products rose 0.4% in December, up 6.4% over the same period in 2019, and the median estimate for a sales increase of 6.4%.
Perhaps the most important reason for the drop in the pound last week was the manufacturing and express services figures. According to Markit, the services PMI fell to a multi-month low of 38.8, which was lower than 49.4 in December and the average estimate is 49.9.
The manufacturing sector expanded at a slower rate as the overall PMI fell from 57.5 to 52.9, and the composite PMI declined to 52.9.
The euro rises in a narrow range amid political uncertainty in Italy
The euro versus the US dollar rose marginally to trade at 1.2181, up by 0.1%, amid mounting political uncertainty in Italy, as Prime Minister Giuseppe Conte is mobilizing the ruling majority in Parliament for its success.
Italian newspapers reported that Conte is about to resign in order to form a new government that depends on a wider majority, as he needs a majority to push legislation to address the economic damage caused by the Coronavirus crisis in the country.
プロのトレーダー兼アナリスト、2004 年から金融および外国為替市場のエコノミスト。エジプトのアメリカン大学で MBA を取得。モハメッドは、多くの国際外国為替および金融取引会社で経済ライターおよびテクニカルおよびファンダメンタルズアナリストとして、英語とアラビア語の両方で日々働いています。