Seems that traders are not ready to put their trust into USD yet after all. The greenback seems very unstable at the moment. See for yourself – yesterday morning we saw greenback gain points against the basket of six major currencies only to plunge later in the day and find powers to recover earlier today. And that is merely 36 hours from the life of the greenback. Surely, volatility in USD was bound to give way to some of the other currencies growth. And such currency appeared.
Unexpectedly, with only 9 days to go to the biggest political event in its modern history, GBP decided to break its bear trend. Yes, the breakout in GBP/USD couple is staggering at the moment. Pound-dollar couple is testing its resistance level and it seems that it can further breakout any second now. What are the reasons behind the growth for the couple? Well, that is unclear right now. But I would say that volatility in USD is one of the key reasons here.
Plus, we still do not know what the reaction of traders is going to be towards GBP/USD. It is possible that even though economic and political impacts are going to be immense, traders have already gotten used to the idea of Brexit and there is not going to be any panic in the markets because of it. This kind of thinking might also have brought pound the possibility to grow and gain right now.
The outbreak might be going on and on. Make sure you do not miss any of it with our trading signals.