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GBP Forex Market Not Disturbed by Leaders Condition

Updated on
  • British PM Boris Johnson Admitted to Intensive Care
  • GBP Gaining Slightly Against Dollar
  • US Markets Continue to Look Upwards

Sterling has gained momentum early against the US Dollar. Forex trading in the market does not appear to have been hampered at all by the fact that British Prime Minister Boris Johnson has spent the night in an intensive care unit. He is in ICU at St. Thomas’ hospital in London after his persistent coronavirus symptoms apparently worsened. These gains are in stark contrast to the pressure the market has been under in recent weeks. It points to renewed optimism in the US market as traders move away slightly from the Greenback.

Britain Remain Upbeat on Prime Ministers Condition

Many may have expected the surprising news on Johnson’s admission to intensive care to have shocked the markets on Tuesday. The reaction though, has been much more optimistic than predicted. This confidence from the market has seen forex brokers open to a busier than expected Tuesday as the US trading session gets underway. It has also been matched by a similar positive tone from Downing Street. The Prime Ministers spokesperson said he was “stable”, and in “good spirits”. This after having been admitted to hospital on Sunday before being transferred to the intensive care unit yesterday.

The leader was diagnosed with coronavirus more than 10 days ago before being admitted to hospital over the weekend for testing with what he referred to as “persistent symptoms”. For the moment, Dominic Raab, the First Secretary of State for the UK, is deputizing for the hospitalized Johnson.

Pound Gains on Movement Away From USD

The GBP/USD forex market was up more than 0.5% in early trading despite the news surrounding the Prime Minister. This movement comes more from the fact that traders have begun pulling back from the US Dollar and the safe haven that it has been in recent weeks. This movement is still tentative, but regardless of the political news and how it may impact the Pound, the pair is currently continuing to ride the wave of positive market sentiment.

There are certainly more twists and turns to come in the days and weeks ahead. For the moment though, with no significant changes in leadership or direction looking likely in the UK, the Pound has managed to stay relatively steady, and benefit from the USD pullback of the last 24 hours.

Positive Signs as Stocks Jump on Opening Bell

Yesterday’s rally on Wall Street has continued into the morning trading session in New York. All major markets increased sharply early on in the morning. The NASDAQ, and S&P 500 both gaining more than 1% immediately. The Dow Jones also rocketed more than 800 points.

Movement has settled somewhat at the time of writing, but the positivity looks set to continue, with traders rebalancing their portfolios amid a hopeful drop in cases of coronavirus. There is still a long road ahead though before market confidence is fully restored.

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.