- GBP/USD fades bounce off intraday low after Wednesday’s downbeat performance.
- NHS expects London to be overwhelmed by virus in a fortnight, general practitioners pushed to prioritize vaccinations over routines.
- US policymakers return to Capitol Hill after a brief stunt that disturbed Electoral College voting.
- Announcements from the US Congress, virus updates and activity numbers from the UK and America will be the key.
GBP/USD eases from 1.3609 to 1.3601, down 0.06% on a day, while heading into the London open on Thursday. The cable remains fails to cheer the broad US dollar weakness, amid stimulus hopes, as the coronavirus (COVID-19) worries dominate in the UK. The pair traders await the US Congress decision on the Democratic Party’s victory while also eyeing the British government’s reaction to chatters over likely jump in covid numbers at home.
Earlier in Asia, the HSJ from the UK came out with a leak from the National Health Services (NHS) suggesting London’s hospitals are less than two weeks from being overwhelmed by covid even under the “best” case scenario. The news follows The Telegraph’s update pushing the General Practitioners (GPs) to emphasize vaccinations over the routines checks.
It should be noted that the GPs are up for contributing to the biggest vaccination program in NHS history as British covid numbers skyrocket. As per the latest virus updates, the UK’s daily death toll due to the COVID-19 topped 1,000, to 1,041, for the first time since April 21, per Sky News.
While the British policymakers are already struggling with the virus woes and third lockdown, the Bank of England (BOE) Governor Andrew Bailey criticized the government’s inability to favor the services sector with the Brexit deal. Even so, the British banker mentioned that the Q4 2020 downside wasn’t great as compared to the forecasts.
On the other hand, a group of alleged supporters of US President Donald Trump forced Congress to evacuate the Capitol Hill building. The policymakers’ return to the business got news of the Democratic candidate’s victory in Georgia and anger on President Trump as Electoral College voting resumes in the US.
Against this backdrop, S&P 500 Futures and Asia-Pacific stocks stay on the front foot amid hopes of further stimulus from the Democrats. However, virus woes probe the bulls, especially in the UK where FTSE 100 Futures lag the run-up despite marking 0.35% intraday gains by press time.
Moving on, UK’s Construction PMI and the US ISM Services PMI will decorate the calendar but major attention will be given to the updates from the US Congress. Also important will be the UK government’s extra efforts to tame the pandemic’s surge. Should American politicians allow Democrats to rule the Senate, hopes of further aid package will help markets. Though, any negative news from the UK won’t be taken lightly and hence should be observed.
Technical analysis
Lower high formation during the current week suggests GBP/USD sellers are rolling up their sleeves for entry. However, buyers are less likely to lose hopes until witnessing a daily closing below a ten-week-old support line, at 1.3310 now.
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