GBP to USD Exchange Rate Slumps Again as UK Brexit and Coronavirus Jitters Hit
October 15, 2020 - Written by Ben Hughes
A combination of UK uncertainties and higher market demand for safe havens is keeping the British Pound to US Dollar (GBP/USD) exchange rate weaker this week. Investors are avoiding the Pound amid concerns that Brexit negotiations could collapse or Britain could see worsening coronavirus restrictions. Meanwhile, the US Dollar remains appealing as investors concerned by global political and coronavirus uncertainties are looking for safe havens. Unless GBP/USD recovers again tomorrow, the pair could be on track to shed last week’s gains. Last week saw GBP/USD climb from the level of 1.2933 to 1.3045 – a gain of over a cent.
This week has seen the pair trending with a downside bias instead though. GBP/USD briefly held its ground at the beginning of the week before tumbling and hitting a low of 1.2843 in the middle of the week. This was the lowest level for GBP/USD since the beginning of the month.
Last night, GBP/USD attempted to rebound, but today the pair has been tumbling once again. At the time of writing, GBP/USD is trending near the level of 1.2921 – just below last week’s opening levels.