Today's risk aversion strengthens the US dollar against a number of currencies, one of which is the British pound. Interestingly, the GBP is weakening despite the 'freedom day' in the UK. The country is lifting all remaining Covid-19 restrictions today. However, the media reported some confusion regarding sending citizens for compulsory isolation after they have come into contact with people infected with the virus. Prime Minister Boris Johnson is in isolation and has explicitly advised the British people to be cautious despite the full opening of the economy. Many people are also concerned about the increasing number of new Covid-19 cases. Meanwhile, the FTSE 100 (UK100) index fell 2.30%, which is still relatively better compared to the German DAX (DE30) or the French CAC 40 (FRA40), where the declines exceed 2.60%.
GBPUSD pair approached important support around 1.3670. In March and April, this level acted as a major barrier for sellers. Today, the pair also tested the line drawn on the recent lows and rebounded slightly. The situation is certainly noteworthy - should a break lower occur, then downward move may accelerate. Source: xStation5
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