Dominic Cummings, Prime Minister Boris Johnson’s most powerful adviser, is under attack over claims he breached lockdown rules. Cummings will make a statement to reporters and take questions at 4 p.m. Should the U.K. become the next major nation with negative interest rates, the pound could also face pressure from the options front, where risk reversals suggest that traders have stayed less bearish compared with the spot market.
How is the Pound trading?
It will be interesting to see if the Pound can break its daily resistance at 1.2285(Marked in orange line) after a positive start of Tuesday’s trading session. A successful break will open the door for the price to go up & test the May 11th high at 1.2440.
As the pair has traded mostly in a range bound market, we will not be surprised if the price goes up as it just got a bounce from 1.2090 which is low of the range of last three month trading.