Sterling falls on surging virus cases.
Sterling under the bearish pressure today amid widespread sterling pessimism and safe-haven dollar inflows. The demand for safe-haven dollar exploded recently amid a global surge in coronavirus. The global rise in Covid-19 infections sparked concern among investors at the start of the week, forcing a sell-off in stock markets and a bid for bonds and the dollar, which spurred a sharp move lower in growth-correlated currencies such as the pound. The sterling is hammered down on fears that after England lifted all COVID-19 social restrictions on Monday, in what local media dubbed “Freedom Day”, this might further accelerate the surge in infections caused by the highly contagious Delta variant of the virus.
Expect sellers on upward corrections.
Next support to watch – 1.3560
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