UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
UK pound slips, as focus shifts to Brexit
On Monday, the UK pound inched down because the evergreen buck bounced off and market participants shifted their focus to impending negotiations that might decide whether the United Kingdom gets a trade deal with the European Union before it leaves the trading bloc.
The UK currency has faced six consecutive losing weeks versus the evergreen buck. That’s the pound’s worst marathon since 2014, even although data, including retail sales hints that the British economy is firm enough.
With less than eight months to pass until the United Kingdom abandons the European Union, the British government requires agreeing with Brussels the terms of its exit, while some hedge funds are already betting against the British pound.
Market experts tell that the UK currency that has lost 12% of its value since April, is going to remain vulnerable to the pitfalls of Brexit talks in the nearer future.
The price of the British currency keeps reflecting Brexit worries. Market experts add that except the UK currency investors still have more than enough places to invest their money.
The UK currency inched down about 0.1% versus the evergreen buck ending up with an outcome of $1.2733, which is close to a 14-month minimum of $1.2662. It soared by up to 0.1% versus the common currency reaching 89.61 pence per euro.
On Monday, the common currency went down due to the fact that the evergreen buck tacked on before proposed trade negotiations between China and the United States of America this week that market participants actually hope will relieve tensions between the world's two leading economies.
Besides this, business leaders' confidence in the UK economy has dived to its lowest value in 2018, thus reflecting uncertainty as for Brexit, as follows from a poll uncovered on Monday.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.