GBP/USD – Prices, Charts and Analysis:
- AstraZeneca shares hit a record high ahead of vaccine report.
- EU/UK trade talks continue with little convergence seen so far.
Sterling will likely be driven in the short-term by the release of a report in the Lancet medical journal today on the effectiveness of AstraZeneca’s COVID-19 vaccine developed in partnership with Oxford University. The vaccine, AZD1222, is said to produce both the production of antibodies and T-cells and results so far have been described as positive. AstraZeneca’s (AZN) share price continues to push higher and earlier today made another record high ahead of the report. A positive report today would give UK assets a much needed boost as the country continues to battle the economic slump caused by the virus.
AstraZeneca Daily Price Chart (August 2019 – July20, 2020)
Chart via IG
EU/UK trade talks resume today in London against a fairly negative backdrop. Neither side has made any concessions in an attempt to break the current deadlock and last week the European Commission began work on a ‘needs assessment’ in the case of no-deal by the end of the year. European Council Charles Michel recently announced a EUR5 billion Brexit fund to help support industries affected by Brexit.
Later today, BoE members Andy Haldane and Silvana Tenreyro will appear before the Treasury Select Committee.
GBP/USD is little changed in early trade although US dollar weakness is giving the pair a small bid. The pair are currently supported by both the 20- and 50-day moving averages while the longer-dated 200-dma is capping any further upside. GBP/USD needs to break above 1.2686 to regain positive momentum and re-test the June 10 multi-month high at 1.2815.
GBP/USD Daily Price Chart (February – July 20, 2020)
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