- GBP / USD records a six-day losing streak after the biggest weekly loss in eight.
- British diplomats begin to prepare for Brexit without agreement, EU Barnier said not to trade values for the benefit of the British economy.
- Haldane of the BOE reports that the central is urgently examining unconventional monetary policy measures.
- Comments from the newspapers Powell, Brexit / Fed virus remain in the spotlight.
After posting the biggest weekly loss in two months, the GBP / USD starts the new week on the back foot while falling to 1.2077 in the early morning of Monday in Asia. In addition to the challenges of the coronavirus (COVID-19), the headlines of the weekend regarding Brexit and the next BOE decision seemed to weigh on cable recently.
Read: What you need to know before the markets open: risk-off, heavy funda GBP, cold wars, Powell on TV
The third round of EU-UK negotiations has been disappointing …
This comes from the European Union (EU) chief negotiator for Brexit, Michel Barnier. The bloc’s representative added at their press conference on Friday that they had not made any progress in terms of governance either.
The Sunday Times, on the other hand, announced that senior government officials have said that the United Kingdom is preparing to “withdraw” from trade negotiations with Brussels next month, unless the EU gives ground. .
More recently, UK Telegraph quoted British negotiator for Brexit talks David Frost, saying that relations between the UK and the EU had “plummeted to a new low after the end of the last round of trade talks in mutual recrimination “.
The BOE revises several policies…
BOE chief economist Andrew Haldane crossed paths over the weekend, suggesting that the British central bank is taking a more urgent look at unconventional monetary policy amid the economic downturn caused by the coronavirus pandemic, according to Bloomberg. It should be mentioned that the BOE Governor Andrew Bailey highlighted the use of widening monetary stimulus in his last comments.
Elsewhere, the British government Tory, led by British Prime Minister Boris Johnson, managed the virus outbreak despite the huge stimulus packages announced by Chancellor Rishi Sunak. Sky News published the updates suggesting that the University of Oxford to find an effective drug “is progressing well” but there are no guarantees, warns a British minister.
While EU-UK ministers have canceled Brexit talks and the economic calendar is also lighter, virus updates and a speech by Fed Powell President to be released Sunday 11:00 p.m. GMT, will be the key to follow. .
While 1.2000 psychological magnet appears on the bear’s radar as an immediate support, at the end of March near 1.1970 and 1.1935 can check the sellers afterwards. On the contrary, the monthly downward resistance from the trend line, to 1.2261 now, keeps buyers away.