GBP/USD: Optimism is prevalent, yet the dual set of Brexit and US stimulus talks may hit roadblocks

FXStreet Team FXStreet

GBP/USD has been advancing as Brexit and US stimulus talks continue. Investors are also shrugging off the spread of top-tier lockdowns in the UK, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“The mere continuation of Brexit negotiations is music to pound bulls' ears after last week's crisis. Back then, EU leaders refused to intensify deliberations and Prime Minister Boris Johnson called the nation to prepare for a no-trade-deal exit.”

“The safe-haven currency has been on the back foot after House Speaker Nancy Pelosi expressed optimism about talks for a large fiscal stimulus bill – letting her self-imposed deadline lapse without cutting off talks. Democrats and the White House team are pressing for a deal, yet Senate Republicans are reportedly pushing against an accord. Pelosi and Treasury Secretary Steven Mnuchin will resume talks later on Wednesday.”

“President Donald Trump has marginally narrowed the gap with rival Joe Biden according to the latest opinion polls. The two septuagenarians will face each other in a televised debate late on Thursday and pollsters are set to publish several surveys ahead of the event.”

“Investors seem to be shrugging off coronavirus cases despite immediate implications to the economy. Additional English regions are entering Tier Three of restrictions – the harshest. By the weekend, around 14% of England and all of Wales will be under considerable limitations. Johnson's government is considering a nationwide ‘circuit-breaker’ lockdown, yet that is still far from an operational plan.”

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FXStreet Team

FXStreet

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