Pound Falls on UK Politics and US Fiscal Stimulus Expectations

The British pound today fell against the much stronger US dollar as markets waited for a fiscal stimulus package to be announced by the US government. The GBP/USD currency pair was also weighed down by British politics as the government gave up its massive majority in a crunch vote on Huawei.
The  GBP/USD currency pair today fell from an  initial high of  1.3088 to  a  low of  1.2899 in  the  American session and  was near these lows at  the  time of  writing.
The  currency pair has been under pressure since yesterday as  Boris Johnson‘s government seems not to  be doing enough to  contain the  coronavirus outbreak. The  government has encouraged people to  self-isolate, including travellers at  a  hotel near Heathrow Airport, but reports indicate that the  policy might be failing. The  pair sunk to  its daily lows after the  government won a  crucial vote on  Huawei in  the  House of  Commons by  a  slim majority as  some MPs revolted. It appears that Boris might be losing the  support of  some MPs in  the  Conservative Party, which might negatively affect future legislation.
Investor expectations that Donald Trump‘s administration will announce major fiscal stimulus measures during the  briefing scheduled for  21:30 GMT also drove the  pair lower as  the  US Dollar Index rallied to  a  high of  96.40.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s UK GDP report and  the  US inflation data.
The  GBP/USD currency pair was trading at  1.2898 as  at  18:52 GMT having fallen from a  high of  1.3088. The  GBP/JPY currency pair was trading at  135.79 having dropped from a  high of  137.21.

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