May 20, 2020
The U.K Faces The Highest Unemployment In Decades
The unemployment benefit claims jumped to a total of 2.1 million. It marks the highest count since 1996 which means an unemployment rate of around 10%. The estimation is that a severe recession in the British economy is very likely to come. Adding to this the mutual blaming regarding Brexit between the U.K and the European Union.
U.K. blames the EU with offering an unfair trade deal. So far there has been a lack of progress in post-Brexit trade deal negotiations. Britain and the EU are likely to put tariffs on each other’s goods and services if no deal can be reached before the Brexit transition period ends in 2021. That means higher prices for consumers in both the U.K and EU.
GBPUSD has formed a double top on the daily chart. Continuation to the downside might push the pair towards 1.2000 psychological level. Nasdaq continues to show strength and currently is the only index out of three major indices that is up +3.75% since the start of the year.
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