GBP shows signs of recovery
The pound showed signs of recovery on Tuesday and rallied against the US Dollar after plunging in recent weeks due to the cornavirus outbreak. Investors sentiment is starting to grow due to a broad based recovery in the world’s major stock markets, this is down to China reporting no new cases of the cornavirus pandemic.
Recent weeks have seen sterling fall to its lowest levels since 1985 with investors putting their money into the dollar, which as seen as a safe haven currency. Furthermore, investors are not convinced by the British government’s plan to stop the virus which has also weakened sterling further.
The outlook for the pound remains bearish, partly because of the countries large currency account deficit meaning the UK is importing more than they are exporting which is hurting the pound. Lastly, the pound did gain some respite on Tuesday after the dollar weakened but the overall outlook for the pound looks bleak.
07:00 – GBP: CPI Y/Y – Forecast 1.7% from previous 1.8%,
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