Pound Falls Amid Speculation That COVID-19 Deaths Are Much Higher

The  Sterling pound today fell against the  much stronger US dollar amid fears that the  global economy was sliding into a  significant recession due to  the  coronavirus pandemic. The  GBP/USD currency pair recouped some of  its losses in  the  American session as  the  greenback gave up some of  its gains, allowing riskier currencies to  post gains.
The  GBP/USD currency pair today fell to  a  low of  1.2435 having opened the  day’s session trading at  an  initial high of  1.2624, but had recovered from its daily lows at  the  time of  writing.
The  currency pair’s decline today was attributed to  a  technical pullback from its 100-day exponential moving average as  bulls took profits garnered from the  cable’s 7-day rally. The  rising coronavirus cases in  the  UK also contributed to  the  pair’s decline as  the  country seems to  be far from flattening the  COVID-19 curve, unlike other European countries. Investors were also worried that the  global economy is heading for  a  significant recession based on  a  statement released by  the  International Monetary Fund (IMF) on  Tuesday. The  news that the  EU and  UK would resume post-Brexit trade talks next week boosted the  pair.
The  weak US retail sales data for  March released by  the  Census Bureau also boosted the  pair as  the  greenback headed lower in  the  American session. The  US Dollar Index fell from its daily highs of  99.98 later in  the  session as  the  cable rallied.
The  cable’s future performance is likely to  be affected by  geopolitical events and  tomorrow’s US jobless claims data.
The  GBP/USD currency pair was trading at  1.2531 as  at  20:13 GMT, having fallen from a  high of  1.2624. The  GBP/JPY currency pair was trading at  134.76, having dropped from a  high of  135.28.

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