Much like the rest of the major currencies, the British pound also saw a round of choppy, low volatility price action this week. This was likely due to the usual battle between risk and counter currency flows versus speculation of another lockdown in the U.K., monetary policy speculation and improving U.K. economic data.
United Kingdom Headlines and Economic data
Boris Johnson could ban domestic travel, tell millions to stay at home, and quarantine all holiday-makers as UK coronavirus cases continue to rise – this speculation on another lockdown was likely the driver for the broad move lower in Sterling.
Sterling broadly moved lower during the morning London session, without any direct catalysts. It’s likely a continuation move of Monday’s speculation of another potential lockdown, with some potential pressure from broad risk-off sentiment on geopolitical tensions between the U.S. and China (China vows retaliation if any U.S. action against journalists)