GBPUSD tested August low yesterday; today, it is still under pressure.
The British Pound remains under pressure against the USD on Wednesday. The current quote for the instrument is 1.2689.
The Pound was let down by a quick growth of the American currency yesterday evening. As a matter of fact, Tuesday’s trading session turned out to be very volatile for the Pound. At first, the British currency was rising thanks to the statistics and absence of the Brexit-related news, but then “bears” returned to the market.
The US President Donald Trump tweeted on Tuesday about a possibility of new import duties on Chinese goods unless 3 months of “trade wars” armistice between the USA and China resulted in a viable and effective solution. Trump wants a “real agreement” and is quite sure that such agreement might be reached sooner or later.
A threat to revive “trade wars” during negotiations scared investors and made them escape to “safe haven” assets, the USD in the first place, from any possible risks. For the unstable Pound, is was another signal to decline.
Later in the afternoon, the Bank of England is going to publish the FPC Meeting Minutes report, but it is very unlikely to contain any reason for the Pound to recover.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.