GBP/USD: Pressured above 1.2300 amid UK’s coronavirus crisis
|- GBP/USD fails to hold onto recovery gains amid fresh coronavirus concerns.
- UK PM is in ICU but stable, doubts over the already higher statistics remain.
- Expectations are mounting that the UK will have Europe’s worst crisis due to the virus.
- Brexit delay gets a push but Tories resist, Deputy PM Raab has “total confidence” in UK PM Johnson’s arrangements.
GBP/USD bears the burden of the coronavirus (COVID-19) crisis as it drops to 1.2310, down 0.18%, while heading into the London open on Wednesday.
Despite the stable health of the UK PM Boris Johnson in the Intensive Care Unit (ICU), a jump in virus statistics and expectations of further deterioration in the conditions weigh on the Cable.
The BBC cited the Deputy PM Dominic Raab as showing “total confidence” in the arrangements Mr. Johnson had put in place. The news also cited the Foreign Secretary being "confident" that the PM will recover from pandemic while describing him as a "fighter".
On the other hand, the UK’s death toll defied the previous weakness while jumping to the all-time high. Even so, CNN doubts the punctuality of the data while The Guardian relies on the Institute for Health Metrics and Evaluation (IHME) study predicting 66,000 UK deaths from COVID-19 by August, with a peak of nearly 3,000 a day, based on a steep climb in daily deaths early in the outbreak.
Furthermore, the EU, Scotland and various others are pushing the Tory administrators for the delay in Brexit deadline but Cabinet Office Minister Michael Gove showed readiness to quit the talks unless there was a “broad outline” of a deal, said the BBC.
On the other hand, data from New York also weighs on the risk-tone and drags the US 10-year Treasury yields down.
With the latest turning point in the pandemic data, investors will keep eyes on each incoming details concerning the virus for fresh impetus. Additionally, Brexit headlines could also entertain traders as the EU-UK policymakers are finalizing the timetable for further Brexit talks in April and May.
Technical analysis
The pair remains inside an eight-day-old falling trend channel. As a result, any moves beyond 1.2425 or under 1.2175 will trigger fresh volatility.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.