Oil prices have decreased and now it is affecting the volatility of Forex market. A terrifying cycle of pandemic forces different countries to take immediate measures to cope up with the deadly situation. UK is facing the same scenario. The pandemic has provoked many countries to seclude their borders and disallow the travelers to enter. Such a drastic step has resulted in reducing the Oil prices. The worst aspect of the current scenario is that the reduction in price is significant and it happened overnight. Undoubtedly this state of economy before Christmas is just like wearing a Halloween costume on Christmas. Traders are struggling to deal with trading scenario to avoid losses.
The Gross Domestic Product of United Kingdom has shown an increase in Q3 by 16% which is greater than the predicted increase of 15.5%. While on the other hand, the number of victims of the pandemic also rose. Human toll continues to shake Forex trading. About 34000 people are found suffering from the deadly virus. The cycle of testing the citizens is now extended to the drivers of the transportation to allow the movement of freight which is held at the ports. More than 39% traders are now net-long in trading. The sentiment analysis of the traders reflects a mixed bias.
Volatility and GBP:
The holidays are about to ring the bell. In this holiday-awaiting time, you can sense high volatility in Forex market. It has become relatively hard to deal with GBP. The current volatility in Forex market is even higher than the volatility of March. Traders prefer to just wait for any solid and verified news before joining a bigger game. After all, it is wise to be careful than to be regretful. The recent trend of GBP/USD is bearish and more than 50% traders are net short. The higher price of Natural Gas in US is further going to affect this pair as well.