Pound Falls to 10-Day Lows on UK COVID-19 Cases, Risk-Off Mood

The  Sterling pound today fell to  new 10-day lows against the  US dollar driven by  the  risk-off market sentiment amid rising UK coronavirus cases and  the  ongoing Brexit talks. The  GBP/USD currency pair’s decline was also fueled by  the  resurgent greenback, which benefitted as  a  safe-haven asset ahead of  next week’s US Presidential election.
The  GBP/USD currency pair today fell from a  high of  1.3025 during the  early London session to  a  low of  1.2880 in  the  early American market but had recouped some of  its losses at  the  time of  writing.
The rising UK coronavirus cases fueled the currency pair’s initial decline as experts warned that the country was at a critical stage given that it is recording about 100,000 new cases daily. The  pound was under pressure as  analysts expect that the  effect of  a  Brexit deal on  the  currency would be temporary at  best as  Brexit talks drag on. The  release of  the  UK M4 money supply report by  the  Bank of  England combined with the  upbeat mortgage approvals data had a  minimal impact on  the  currency pair.
The  looming US election cast a  shadow on  the  pound given that President Donald Trump, who is a close ally of  Boris Johnson is trailing Joe Biden in  most opinion polls. The  release of  the  upbeat US jobless claims report and  US Q3 GDP data pushed the  cable to  its daily lows.
The  currency pair’s future performance is likely to  be affected by  Brexit news and  US dollar dynamics.
The  GBP/USD currency pair was trading at  1.2933 as  at  20:07 GMT having fallen from a  high of  1.3025. The  GBP/JPY currency pair was trading at  135.31 having dropped from a  high of  135.95.
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