Pound Back to Being Bearish After a Brief Bounce

For the first time since Boris Johnson took over as UK's PM, the Pound managed to gain some strength against the dollar briefly

Written by: Arslan Butt • Thursday, August 1, 2019 • 1 min read

• Last updated: Thursday, August 1, 2019

For the first time since Boris Johnson took over as UK’s PM, the Pound managed to gain some strength against the dollar briefly on Wednesday. However, this move was driven more by traders being cautious towards the US dollar ahead of Fed’s meeting.

For now, the weakness in GBP/USD is back and getting more pronounced, with the forex pair trading at 1.212 at the time of writing. PM Boris Johnson continues the rhetoric around leaving the EU on October 31, with or without a deal, exerting more pressure on UK’s economy as well as the currency.

Wednesday’s upward move was also driven by optimistic consumer survey data, but the no-deal Brexit scenario weighs heavily and continues to drive the Pound’s bearish moves after that brief bounce to above the 1.22 level.

Today, GBP traders will be eyeing the Bank of England’s meeting for signs of a possible cut in interest rates. Most traders are anticipating that the central bank will leave rates on hold for now, but cut them by the end of this year.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.