The GBP / USD pair was successfully reach the rebound position around 30 – 35 pips from its lowest position in one month. It means that this pair is quite stable in the psycholog level of 1.4100.
The GBP / USD watched some selling actions around the first quarter of the trading which happened on Sunday. After that, it slipped down to its lowest level since the middle of May.
The trend was still continue although it found some supports around the area of 1.4070. Elsewhere, the British pound sterling is also affected by several situations that make its move.
The Concern about Brexit
In fact, the British pound is weighted by the concern about Brexit and also a worry that the country will delay its plan. That is actually a plan where British will end the lockdown session.
Before, the government there decided to apply the lockdown session due to the quick spread of the Delta variant. It is known that the virus spread quickly and can affect so many people.
Based on the information, the senior ministries in British signed the decision to delay the lockdown opening and the whole COVID-19 limitation outside the 21 of June.
The Prime Minister, Boris Johnson will make a statement about the coronavirus situation on this Sunday. He also pushes the time line again to be ended as soon as possible.
The Lockdown is an Inhibitory Factor
In fact, the lockdown decision which is applied in sever areas is thought as the inhibitory factor. It is especially for the declining sterling in the forex market. In the other side, there is an expectation about the Fed.
People think that maybe the organization will start a discussion about their assets purchase reduction in facing the inflation pressure which is increasing. The situation like that brings the effect.
Basically, that can give some supports to the US dollar. The obligation yield result in that country is experiencing a slightly decrease. That holds the USD increase and help to limit the deeper decline.
The aim is for sure to support the GBP / USD strengthening at least for this time. Furthermore, it seems that the market participants still doesn’t want to apply the aggressive bet ahead of the FOMC meeting.
The Market Participants are Wiser
For your information, the FOMC meeting will be held in 15 and 16 of June 2021. There is not any economic data that will be released as the main market mover on Sunday. It is whether from British or America.
That is why; the investors and traders are quite wiser right now. They are waiting for some further actions due to the stronger selling before the traders start for positioning themselves.
It is related to the further depreciation steps. Basically, they are now highlighting any progresses that can be gotten from various sources. That can be the important news, data release, etc.
Gold is Having a Better Position
The gold or XAU / USD bounced from the lowest intraday to the $1.890. However, it is still underpressured under the $1.900 for three days in a row in the middle of the Asian session.
That happened on Thursday. The market concerns ahead the United States Consumer Price Index and the European Central Bank gives the declining pressure for the prices of gold commodities lately.
At the same line, that can be the news about Brexit and goes to the level of $1.890. That is ahead of the Joe Biden plan to take a role in the main problem faced by the European Union and British.
Besides that, a discussion about the America’s leaders to do a detail research about the beginning of Covid and the relationship between America – British also weight on that sentiment.
