- Sterling finds no takers as UK's finance minister warns of massive economic contraction.
- The coronavirus-led uncertainty could keep the US dollar better bid.
- European markets are closed on account of Easter Monday.
GBP/USD is struggling to extend its four-day winning streak, as Sterling is struggling to draw bids amid heightened fears of a sharp economic slowdown.
The currency pair is trading near 1.2465 at press time, having faced rejection at 1.2486 on Friday. That level capped upside on March 27.
UK GDP to contract 30% in Q2
Britain's gross domestic product (GDP) could fall by up to 30% in April to June period due to the coronavirus outbreak, Finance Minister Rishi Sunak said, according to The Times. Sunak added that ten ministers were asking for easing of lockdown restrictions, starting from May.
"It's important that we don't end up doing more damage with the lockdown. We're looking at another three weeks of lockdown and then we can start to ease it," a minister said.
Calls for a partial end of lockdown are increasing across the globe, as it is increasingly becoming clear that the world economy is heading toward an economic depression worse than the one seen in 1930.
However, if the number of coronavirus cases continues to rise, then governments would be left with no choice but to keep the lockdown going. The uncertainty is likely to keep the demand for cash, mainly the U.S. dollar, strong in the near future.
Hence, the path of least resistance for GBP/USD appears to be on the downside. Britain has so far reported 9,875 deaths from the coronavirus pandemic, the fifth-highest national number in the world. Prime Minister Johnson's office said on Friday that he was back on his feet but will need time off to recover from the coronavirus infection.
|Today last price||1.2465|
|Today Daily Change||0.0012|
|Today Daily Change %||0.10|
|Today daily open||1.2453|
|Previous Daily High||1.2487|
|Previous Daily Low||1.2445|
|Previous Weekly High||1.2487|
|Previous Weekly Low||1.2165|
|Previous Monthly High||1.3201|
|Previous Monthly Low||1.1412|
|Daily Fibonacci 38.2%||1.2461|
|Daily Fibonacci 61.8%||1.2471|
|Daily Pivot Point S1||1.2436|
|Daily Pivot Point S2||1.242|
|Daily Pivot Point S3||1.2395|
|Daily Pivot Point R1||1.2478|
|Daily Pivot Point R2||1.2503|
|Daily Pivot Point R3||1.252|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.