FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
ETX Capital information and reviews
ETX Capital
Markets.com information and reviews
FxPro information and reviews
47 783.36

Britain's New Stance

21 September 2020

For the first time in 30 months we are witnessing a weak Dollar, which would normally be positive for the British Pound that has traditionally aimed for a strong currency due to its high amounts of imports vs exports. This has been the case over the last 6 months, but the Pound has struggled lately retreating from price highs. This article will look at the different elements which are having a negative impact on the British Pound.

The British Pound, over the last 24 hours, has strengthened amid the macroeconomic data released today from the UK. Average earnings including Bonus in July increased, claimant Count Change fell in August to 73.7K, and the Unemployment Rate for July remained at the expected level of 4.1%.

At the same time, youth unemployment has also caught some traders’ eyes. The unemployment rate grew to 4.1% in July, compared with 3.9% previously. Young people were particularly hard hit, with those aged 16 to 24 suffering the biggest drop in employment compared with other age groups. 4.1% is not necessarily considered heavily high but at the same time if the figure continues to increase it will damage overall sentiment. 

Chancellor Rishi Sunak said “helping people get back into, or finding new work” was his “number one priority”. But in a briefing to the Cabinet on the economy, he reaffirmed a decision not to extend the government’s Job Retention Scheme which ends on 31st October. How badly will this affect the youth unemployment rate?

Brexit and the New Bill 

However, even with the largest uptrend price movement, the GBP continues to remain under the pressure of sharply increased risks associated with the hard Brexit. One of the things which currency traders fear is uncertainty, and the markets are still trying to figure out what Boris Johnson is trying to achieve, having stepped up criticism of the EU recently. 

Last week the British government passed a bill that could allow the UK to actually violate international law on the issue of trade with Northern Ireland and passed a new similar bill yesterday. It’s possible that these are only political machinations, designed to bargain with the EU for the best deal terms, but so far Johnson’s position looks quite plausible.

The move by the British Prime minister has received a lot of criticism from parliament and previous Prime Ministers because it seeks to overrule parts of the Brexit deal between the UK and the EU that came into effect in January. 

COVID-19 in Britain 

The Virus in the UK and around the world has slightly taken a back seat as most traders believe the government will refrain from a further lockdown. However, rising cases do not necessarily support the sentiment and if the government does impose restrictions as the UK has, it may put further strain on the UK’s GDP, inflation and the currency.

In the last month the number of cases in the UK has increased from well under 1000 per day to over 3500 cases per day. Since then the UK government has put in further restrictions but refrained from commenting on possible lockdowns.

The Price Movement 

When  looking at the 4 hour chart the Pound has started to slightly recover from the large bearish trend in early September. The pair has managed to achieve a slight higher higher and higher low amongst the swings, however, it is very slight and with not much momentum.

Price movement is likely to increase on Wednesday afternoon as the US releases its economic projections and Federal Interest Rates. Therefore, traders should be aware that these announcements may completely change the trend and volatility. 


This article was written and submitted by eXcentral. 

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.81% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.



Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021

Fintech - too big to be?
Fintech - too big to be?

Two of the world’s largest economies are in sync with pressure on their fintech giants. Access to user data and the growth of ecosystems have effectively...

13 Sep 2021

European Futures Set To Recover Losses
European Futures Set To Recover Losses

European futures are trading higher today as investors are largely glad that the European Central Bank didn’t take too many hawkish monetary initiatives yesterday...

10 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.