As an outcome, the US Dollar is coming under heavy pressure and struggling against its peers.
For lack of a driver for its own impetus, the Pound Sterling was given support by a US Dollar that has broadly weakened in recent days. Analysts point out that growing uncertainty over the Brexit transition, coupled with worrying signs of the country’s economic prospects, has resulted in most FX traders staying on the sidelines. Analysts expect that that general malaise is likely to linger for the rest of the week given the absence of any relevant fundamental data from the UK. That will keep the Pound pinned down as the major underperformer against its key rivals in the G10.
As of 11:28 am in London, the GBP/USD was trading at $1.2864, up 0.6099%; the pair has ranged from a low of $1.277431 to a peak of $1.28692 in today’s trading day. The EUR/GBP is trading at 0.9115 Pence, a gain of 0.0296%, and well off the session peak of 0.91399 Pence. The GBP/JPY was lower at 135.4290 Yen, down 0.2468%, with the session trough set at 131.131 Yen.
In the US, market jitters are escalating with the mismanagement of the Covid-19 response from the Trump administration. Because there is no national policy as regards the Coronavirus, state governments are left to fend for themselves. In some instances, especially in the cases of Republican state leadership, that means following the guidelines set down by the White House; in the majority of those cases, for example, in Florida and Texas, the numbers of infected are surging. Whereas states with Democratic governors have taken a more proactive approach, with lockdowns and quarantines, and mask orders. As an outcome, the US Dollar is coming under heavy pressure and struggling against its peers.
The EUR/USD was higher at $1.1728, up 0.6083% and off the session peak of $1.17339 while the USD/JPY was trading at 105.2600 Yen, down 0.82% and off the earlier low of 105.243 Yen.