30.06.2020 Gbp/Usd Daily Analysis

30.06.2020 Gbp/Usd Daily Analysis

Gbp/Uds is trading at 1.2264 today; it is trading lower with 0.26% mainly because of the release of the UK final gross domestic product figure suggesting that the contraction in the first quarter was deeper than originally estimated. The pound has been weighed down by a number of factors of late, not least is the economic damage caused by the shutdown associated with the coronavirus and the way the government has handled the outbreak.There are concerns about how Britain's government will pay for its planned infrastructure program following Prime Minister Boris Johnson's promise to increase spending. Johnson is due to give a keynote speech on the topic later Tuesday. On top of this, there is great uncertainty surrounding Britain’s trading relationship with the European Union as little progress has been made on agreeing a trade pact.  Additionally, U.S. Federal Reserve Chair Jerome Powell said late on Monday the outlook for the world's biggest economy is "extraordinarily uncertain" and will depend both on containing the coronavirus and on government efforts to support the recovery.