The pound sterling falls in the Forex market, because it is under pressure. Since the measures taken by the British government for the economic reopening, generated a resurgence of the coronavirus in the country.
The performance of the pound has been very changeable since the COVID-19 crisis hit globally. Well, Brexit had always been the stumbling block for the United Kingdom before, now, the coronavirus influences the future of the British economy.
In this way, traders have moved away from the operations of the British currency.
The pound sterling falls again
After the pound gained some ground in the first trades, due to data showing that British buyers continued to spend last month, on Friday its price fell in the market.
So investors turned around when Britain signaled that it was considering imposing a second national lockdown on the economy.
This is due to the fact that the new cases of COVID-19 in the region, since they doubled to 6,000 per day. Well, hospital admissions were up and infection rates skyrocketed in parts of northern England and London.
The prospect of a chaotic end to the Brexit transition period in December, if the UK does not reach a trade deal with the European Union, also continues to outpace the British currency. Being a constant cause of the fall of the British pound in the Forex market.
And although the Bank of England maintained its main stimulus programs this week, as expected. He also said that the British economy had performed better than expected. This was not enough to stimulate the interest of traders.
Price of the British Pound to date
At time of writing, the British pound is trading peer to the dollar at 1.2928, falling 0.41% in its last session before the close of the Forex market on Friday, according to data from SimpleFX.
Finally, due to risks related to the increase in COVID-19 cases, the dismantling of employment protection schemes and Brexit, the Bank of England said it was ready to take more necessary measures to balance the economy.
Do you think these measures to take further complicate the outlook for the British pound? Leave your opinion in the comments.