GBP/USD: Bearish ahead of Brexit negotiations
The GBP/USD pair came under some aggressive selling pressure during the second half of Friday’s trading action and tumbled to 4-1/2 month lows. Investors look forward to UK/US PMI print, UK-EU trade negotiations for a fresh impetus.
“The greenback met with some fresh supply after the Fed Chair Jerome Powell said that the central bank will ‘act as appropriate’ to support the economy and offset the risks posed by the coronavirus epidemic.”
“The USD bulls remained on the defensive on the first day of a new trading week and continued lending some support to the major.”
“Market participants now look forward to the release of final UK Manufacturing PMI for a fresh impetus.”
“The key focus will be on the first formal meeting between the UK chief negotiator, David Frost, and his EU counterpart, Michel Barnier. Given that investors do not expect any major breakthrough at this initial stage of negotiations, fresh developments should play a key role in influencing the sentiment surrounding the British pound and infuse some volatility.”
“Later during the early North-American session, the release of the US ISM Manufacturing PMI will also be looked upon to contribute towards producing some meaningful trading opportunities.”