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Sterling slides to 7-day low

The British pound continues to retreat against the US dollar, slipping to a weekly low. GBPUSD is currently trading at 1.3854 and may move lower towards 1.3830.

Aside from the most obvious factor – local strengthening of the dollar – the pound is also under pressure from the possibility of a massive outbreak of the Delta strain of Covid-19. The UK is preparing on July 19 to lift essentially all existing containment measures, but right now the country is recording the highest number of new Covid cases – due to the Delta strain – since January. Admittedly, the population has reached a high level of inoculation, but this is by no means a panacea for the spread of the virus.

In addition, sterling is still being impacted by the UK-EU trade standoff. There is still no progress to report, and this may hinder a more active recovery of the English economy after the pandemic-induced recession.:

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