The Pound is being dragged down. Overview for 28.01.2020
On Tuesday, GBPUSD is retreating under market pressure in anticipation of the Brexit.
The British Pound is looking more and more vulnerable against the USD. The current quote for the instrument is 1.3020.
A rather clear trend of escaping the risks related to the outbreak of the Chinese coronavirus and its consequences puts additional pressure on the British currency. However, the key driver remains the same, the Brexit, which is only several days away. It seems that market players are very eager to see that the exiting procedure really starts – this fact alone may help the Pound reach stability.
At the same time, there are still enough risks, starting from border issues to trade nuances and fees. All these things will have to be discussed and solved later, they will require a lot of time and the transition period may not be enough for that.
Later today, one should pay attention to the CBI Realized Sales in January, which is expected to show 5 points after being 0 in December. Any reading above zero means indicates the growth of sales and vice versa. A positive number might support the USD, but the current market pressure is too high.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.