GBP/USD: UK round of easing restrictions to limit the slump

GBP/USD is on the back foot, down -0.19% on a day to 1.2245 at press time, amid the Brexit impasse and US coronavirus concerns but the easing of restrictions in the UK could limit the slide, FXStreet’s analyst Yohay Elam informs.

Key quotes

“UK PM Boris Johnson's latest round of easing includes the reopening of bars after over three months. Leicester, the midlands city which is experiencing a new COVID-19 outbreak, is excluded. While the news cheers up traders and may also support sterling, many Americans across the pond will have bars and restaurants off-limits this Independence Day weekend. Coronavirus cases in the US are surging, hitting a new daily high of 55,000 on Thursday.” 

“Earlier on Thursday, investors were more enthusiastic, cheered by the Nonfarm Payrolls report. The US gained – or better-said restored – no fewer than 4.8 million jobs, beating economists' estimates for only three million. The Unemployment Rate fell to 11.1%, also exceeding estimates. While the rapid recovery is encouraging, the data is from the first half of June – before the second wave hit hard.” 

“The Brexit impasse could continue impacting the pound. While both the EU and the UK aspire to reach a ‘landing zone’ shortly, they remain divergent on opinions – and postponed a meeting between top negotiators. The EU and the UK disagree over Brussels' demand that London aligns regulations in return for easier market access.”


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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recovers towards 1.1750 as risk-on rules

EUR/USD is back around 1.1750 as upbeat US data fueled equities' early rally. Concerns about economic progress remain in the background, as the pandemic keeps taking its toll. 


GBP/USD bounces from 1.30 as demand for the dollar eases

Dollar's corrective advance seems complete, now down against most major rivals. GBP/USD trades little changed for a second consecutive day in the 1.3060/70 price zone. Market players continue to ignore upcoming Brexit chaos.


Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News