GBP/USD extends recovery gains towards 1.1700 despite UK lockdown concerns
|- GBP/USD stretches pullback from the multi-year low.
- UK PM Johnson to announce sweeping laws amid concerns of lockdown.
- US Senate drops the Trump administration’s COVID-19 bill.
- Another voting in the US Senate, coronavirus updates will be the key.
GBP/USD pays a little heed to the UK lockdown concerns while taking the bids to 1.1655 ahead of the London open on Monday. In doing so, the Cable could have taken clues from the US Senate’s failure to pass President Donald Trump’s Coronavirus (COVID-19) Bill. Moving on, the G20 conference call and another voting on the Bill will be the keys to watch.
The British PM Boris Johnson warned that the UK is heading towards a lockdown, after appeals to the public to stay indoors were largely ignored during a sunny Mother's Day, as per the Sky News. “MPs are returning to the Commons after the weekend to debate the government's Coronavirus Bill in all its stages, before it goes to the House of Lords and becomes law by the end of this week,” also mentioned in the news.
The Tory leader also raised concerns over the Italy-like situation in the Kingdom after knowing that the death toll reached 281 and the there are 5,683 confirmed cases, as per the BBC.
On the other hand, the US Senate’s failure to pass the much-awaited COVID-19 Bill dragged the Treasury yields and Asian stocks down.
Other than the discussion/voting over the bills, conference by the G20 Finance Ministers might also offer intermediate clues whereas the US Chicago Fed National Activity may also act as a buffer.
It should also be noted that the PM’s Chief adviser Dominic Cummings was alleged to support herd immunity and hence any developments on the story could also entertain the Cable traders.
Technical Analysis
Unless declining back below 1.1400, GBP/USD prices may aim for September 2019 bottom surrounding 1.1960.
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