The Cable plunged to 1.3610 but made back most of its intraday losses before the close of the day. The positive mood failed to give a boost to the high-yield pound, but put a stop to the dollar’s advance, mainly during the American session. In the meantime, Scotland has extended its current lockdown measures into early March. The covid-19 situation keeps improving in the UK with the government hurrying vaccine immunization as so far, the UK has administered nearly 10 million doses.
On the data side, the UK calendar has been quiet, with the market anticipating for the BOE’s Super Thursday. The major theme will be a survey on the effect of negative rates on the banking sector which is a sensitive matter as policymakers have been hesitant to do so, despite the current crisis.
Today, Wednesday, Markit will release the last version of the UK January Services PMI, predicted unchanged from preliminary estimates at 38.8.
The GBPUSD trades in the 1.3662 region this morning, bearish in the near-term. Technical indicators have continued their trends within negative levels, with the RSI currently consolidating around 42. The Cable on the downside has a support at 1.3625, which means a break below that level should favor the bears.
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