Cable nears the September low as talk of new COVID restrictions continues


content provided with permission by FXStreetRead full post at forexlive.com

Rising UK cases aren’t helping the pound

Rising UK cases aren't helping the pound

Cable is down 130 pips on the session and is now less than 30 pips from the September low of 1.2762.

The latest is a statement from the  hief medical officers of England, Scotland, Wales and Northern Ireland that says: “After a period of lower COVID cases and deaths, the number of cases are now rising rapidly and probably exponentially in significant parts of all four nations.”

The comments could mean a rise in the UK COVID alert level to 4 from 3 is coming. It was lowered in the middle of June. That could mean a fresh round of restrictions in the country and the associated knocks on economic growth.

Brexit is the other obvious risk. The UK bank regulator warned banks today to accelerate preparations for a disorderly Brexit at year end.

The bulk of today’s move is about the US dollar as it rallies on broad risk aversion. Barring a huge reversal, this will be the fourth consecutive day of selling in the Nasdaq.

It obviously looks rough out there now but that’s the best time to buy if you’re a GBP bull. Alternatively, look to sell a break below the September lows.