{"id":173120,"date":"2020-07-03T07:52:30","date_gmt":"2020-07-03T11:52:30","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173120"},"modified":"2020-07-03T07:52:30","modified_gmt":"2020-07-03T11:52:30","slug":"pound-ready-to-party","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/pound-ready-to-party\/","title":{"rendered":"Pound ready to party?"},"content":{"rendered":"
July 3, 2020<\/div>
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By Han Tan, Market Analyst, <\/strong>ForexTime<\/strong><\/a><\/p>\n

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The Pound has seen a slight lift and is holding steady in the run up to the so-called \u2018Super Saturday\u2019 \u2013 as pubs, restaurants, and hotels reopen on July 4 after spending the past three months on lockdown. Sterling has been the third best performer among G10 currencies so far this month, gaining 0.56 percent against the US Dollar since Tuesday. The recent gains has set GBPUSD\u2019s 50-day simple moving average on a possible course of convergence with its 100-day SMA.<\/p>\n

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The move is eagerly anticipated by the services sector, with an estimated 960,000 hospitality staff set to return to work over the course of July and give the UK economy a much-needed boost. \u2018Super Saturday\u2019 should bolster the domestic economy\u2019s chances of a recovery, aided further by the 107 billion Pounds worth of stimulus measures already announced by the government.<\/p>\n

However, if the lessons of some US states are anything to go by, a hasty reopening that results in a resurgence of\u00a0coronavirus cases in the country could force businesses to shut down once more and layoff more workers. The city of Leicester had to reimpose lockdown restrictions this week after a spike in cases, with the pandemic having claimed over 43,000 lives across the country.<\/p>\n

Such an event would be a major setback for the UK economy, and by extension, for Sterling as well, snuffing out the green shoots of demand recovery\u00a0as seen in May\u2019s better-than-expected retail sales data. It also remains to be seen whether consumer sentiment can hold up, at least enough for UK households to part with some of the record deposits that they made in May, amounting to 25.6 billion Pounds.<\/p>\n

Still, the outlook for the Pound remains mired with downside risks. Besides the threat of a second wave of coronavirus cases, the Brexit saga is plodding along with major differences still evident between UK and EU negotiators. This week\u2019s talks ended a day early, but are set to resume in London as planned next week. As long as the threat of a no-deal Brexit remains on the table, Pound is unlikely to register significant gains against the Dollar. Conversely, a Brexit trade deal that is sealed sometime in Q3 could push GBPUSD back towards 1.30 and return the currency pair\u00a0to pre-pandemic levels.<\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Han Tan, Market Analyst, ForexTime The Pound has seen a slight lift and is holding steady in the run up to the so-called \u2018Super Saturday\u2019 \u2013 as pubs, restaurants, and hotels reopen on July 4 after spending the past three months on lockdown. Sterling has been the third best performer among G10 currencies so […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-173120","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=173120"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173120\/revisions"}],"predecessor-version":[{"id":173124,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173120\/revisions\/173124"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}