Another Recession Could Be On The Horizon While The GBP/USD Holds Firm

The Pound to US Dollar rate held firm on Monday and still remained above key resistance levels despite ongoing concerns about coronavirus and Brexit. However, it was Brexit optimism that helped the currency to stand firm through trading with the currency finishing the session at 1.1023 against the EUR and 1.3016 against the USD according to the Foreign Exchange Market. However, investors are hopeful that further talks will remain productive between the UK and the chief Brexit negotiator.

It was a defensive day for the Euro on Monday after further coronavirus concerns placed even more pressure on the single currency. Angela Merkel, the German Chancellor announced that Germany was close to losing control of the virus which left investors slightly concerned as further restrictions seem imminent. However, with no further data likely today, it means that the Euro is likely to continue to struggle.

There was a glimmer of hope for the US Dollar as a drop in market sentiment saw investors flock to the safe-haven currency. The increasing coronavirus infections in the US, as well as concerns over a US stimulus agreement, soured the market mood. The US Dollar could be influenced by the US durable goods figures which are due to be released shortly.

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