USD Forex Market Weakens as Stocks Rebound

• GBP & EUR Both Regaining Strength
• Uncertainty Still Clouds Brexit Agreement
• Major Tech Bounces Back After Torrid Days

Both the Euro and the Pound forex market have managed to bounce back from the low points of yesterday as the Dollar weakened again slightly following the reopening today. It remains to be seen if this rebound will hold up as certainly the Pound has some difficult domestic struggles to deal with surrounding Brexit. Meanwhile, the major tech stocks have also seen a sharp rebound at the opening bell today. Tesla is up more than 8% following its worst day on record in the previous session.

Forex Recovery for Both Sterling and Euro

Both The Pound and Euro endured a tough day yesterday. Both fell to recent lows as many moved back toward the safe haven of the US Dollar according to forex brokers. This may have been preempted by the huge market fall in major tech names like Apple, and Tesla after such an impressive run up. Many expected such a correction in forex trading, and the majority still do. This however looks to have been pushed off for at least the time being.

The Pound pushed back toward 1.30 today despite a number of issues on the home front. Not least of these is the rising number of COVID-19 cases as many restrictions again begin to be tightened. The recent pause of the vaccine trials at AstraZeneca have also dealt the UK a blow, especially given they had reached such an advanced, and promising stage. The Euro also climbed back over 1.18 against the Dollar having previously been impacted by much of the same news.

EU Anger as UK Attempt to Move Brexit Goalposts

There is widespread anger within the EU at a new bill proposed by the UK which could have huge ramifications on both the Brexit trade negotiations, and the deal as a whole. UK leader Boris Johnson has urged support for the “Internal Markets Bill” which would effectively alter many aspects of the Brexit agreement which was signed in January. Areas related to customs checks on goods would be especially impacted.

The move has caused uproar among EU leaders, coming as negotiations on post-Brexit trade continue to remain fruitless in London. The move to push through new legislation which would, by the admission of one British minister, break international law, is certainly a concern for forex trading and the wider economy.

US Markets Open With Strong Recovery

Major US markets opened strongly on Wednesday following an awful previous day. Shares in Tesla rebounded more than 8% following their largest single day losses ever on Tuesday. The Dow Jones traded more than 400 points higher as caution was still urged by many analysts following the correction to start the week.

Despite the pullback, markets are still up massively from their March lows. This is particularly true for the S&P 500, and NASDAQ which is still trading at 60% above its levels in March.