Forex:Will GBPUSD drop following announcement UK Prime Minister tests positive last?

The GBPUSD suffered a fall from its highest level in close to 10 days following the breaking news that both UK Prime Minister Boris Johnson and Health Secretary Matt Hancock tested positive for the coronavirus. The drop of close to 100 pips does have a question market over it on how long it will last, considering the persistent weakness that has transpired in the USD in recent days as well as the inevitability that world leaders are at the same risk of everyone to the virus.

Boris Johnson is set to remain in his position as Prime Minister and there is no imminent change in power as he works from home, therefore questions are valid on whether the GBP move lower is justified. Some could say it is actually a surprise given the density of the global virus breakout that more senior officials and world leaders have not been announced as testing positive.

At time of writing there is a risk that the bubble of optimism and feel-good factor across world stock markets in recent days will fade. The FTSE 100 is down more than 5% and the Dow Jones 4% during trading today.

Although central bank officials and governments can be commended for the support they are providing the global economy in its time of need, this does not mean these measures will defeat the issue at hand – a disease outbreak.

Should the number of world virus cases reach 1 million over the next couple of days, investors will just request more from officials in stimulus support and that isn’t realistic considering everything that has already been provided.


MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

風險提示

MyFxtops邁投所列信息僅供參考,不構成投資建議,也不代表任何形式的推薦或者誘導行為。MyFxtops邁投非外匯經紀商,不接觸妳的任何資金。 MYFXTOPS不保證客戶盈利,不承擔任何責任。從事外彙和差價合約等金融產品的槓桿交易具有高風險,損失有可能超過本金,請量力而行,入市前需充分了解潛在的風險。過去的交易成績並不代表以後的交易成績。依據各地區法律法規,MyFxtops邁投不向中國大陸、美國、加拿大、朝鮮居民提供服務。

邁投公眾號

聯繫我們

客服QQ:981617007
Email: service@myfxtop.com

MyFxtops 邁投