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GBPUSD drops as Cummings reveals all

GBP - British Pound

Sterling continued to depreciate against the dollar on Wednesday, dropping towards the $1.41 handle. There have been a few concerns around the effect Brexit will have on the UK construction sector, which could face delays to the post-Brexit certification scheme.

There were some serious allegations made against UK Prime Minister Boris Johnson by his ex-aide Dominic Cummings, who left Johnsons side in November 2020. He suggested the government failed the British public in their handling of the Covid-19 pandemic. This has contributed to GBPUSD dropping yesterday. Cummings’ testimony threatens to dampen the optimistic mood surrounding the Johnson administration since the successful vaccination programme and the roadmap out of lockdown.

GBPEUR traded within a very narrow range yesterday of 40 pips with the pair struggling to breakout of the range we have been trading in since the start of April.

Key Movers

There was a slight correction in EURUSD which dropped briefly below the 1.22 handle yesterday evening with all eyes now US prelim GBP released today at 1.30pm.

U.S. Trade Representative Katherine Tai and China’s Vice Premier Liu He had an initial conversation as both party’s attempt try find a solution to some of their differences on trade. This can be seen as another step in the right direction for US-China trade tensions.

Expected Ranges

GBP/USD: 1.4060 - 1.4170 ▼

GBP/EUR: 1.1520 - 1.1620 ▼

GBP/AUD: 1.8170 - 1.8290 ▼

EUR/USD: 1.2170 - 1.2260 ▲