The pound slightly dropped against the dollar as COVID-19 death toll rises

Number of Covid-19 deaths in the UK has grown to more than 16,000

Even though daily death chart improves, number of daily new confirmed COVID-19 cases has slightly grown.

The government began to discuss whether its lockdown measures were not eased too early. In a reaction to the latest data, the pound has dropped against the dollar in 0,2%. Moreover, the pound has lost 0,2% against the euro. Some investors cut their long positions on the currency, which caused its fall.

“We’re quite sure that the outlook for the pound is good in the long term horizon. In a short term, the currency may drop as some easy money will leave the market,” Dean Turner, an economist at UBS Wealth Management, told Reuters.

According to Turner, the pound is undervalued and its return to fundamental value should come only by last quarter of this year. The British currency is paying for insecurities around Brexit, but it’s also the coronavirus pandemic, what froze economic activities in the country. While questions around Brexit might be solved soon, a start of economic recession is rather inevitable.

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Sephora Stock & LVMH Investment Guide: Is Sephora Publicly Traded?

Sephora is one of the world’s most recognisable beauty...

Japan and US jointly intervene to support yen for first time in 15 years

Japan and the United States carried out a coordinated...

VUG Stock Split: What Vanguard’s 6-for-1 Split Means for Investors

Investors searching for information about the VUG stock split may have...

Dollar, Pound, and Franc: How USD to GBP and Interest Rate Differentials Drive Currency Flows

The relationship between the US dollar, British pound and...

AFP: Developers are testing ways to communicate with books using AI

More and more start-ups and digital publishers are offering...
spot_img

spot_imgspot_img