This Is The Reason That Haunts Pound Trading! - - Financial Market Media No. 1 in the World This Is The Reason That Haunts Pound Trading! This Is The Reason That Haunts Pound Trading!

June 29, 2021

This Is The Reason That Haunts Pound Trading!

 The movement of major currencies was limited in the Asian session due to the absence of a clear catalyst, while the market is now more cautious ahead of the release of US NFP jobs data.

This provides an opportunity for the US dollar to trade higher against most major currencies. The dollar index traded steady around 91.89 after soaring high in the previous session, hitting 92.00.

The pound continued to depreciate even after the new UK Health Minister Sajid Javid said that the coronavirus ban would still be lifted again on July 19, as the government had no reason to extend it any longer.

Nevertheless, the current health situation in the country shows no signs of complacency in the spread of the virus. On Monday, the UK reported a total of 22,868 new coronavirus cases, the biggest one -day increase in five months, amid the spread of delta variants.

This has pushed the pound to trade lower against the US dollar to around 1.38650 in the Asian session.

Meanwhile, the euro was slightly impressed with a statement by European Central Bank (ECB) policymaker Robert Holzmann who said there was no room to raise interest rates due to weak inflation.

In addition, he also stressed that the emergency bond purchase program (PEPP) will be terminated when the coronavirus emergency is over, something that will not happen in the near future.

The Asian currency, the Aussie dollar, was trading under pressure amid a surge in coronavirus infections in several states, forcing the government to tighten movement restrictions to curb the spread.