GBP/USD reached its highest level in nearly a week

The British pound saw a strong rebound on Monday, with the GBP/USD pair pushing to 1.2929, which is the week’s highest level. Even though the pair fell back from a daily high, the bulls remained in control.

Growing hopes for the trade deal between the EU and UK supported the pair. The representatives of both economies enter the ninth round of negotiations, and there is cautious optimism. According to a spokesman of the British Prime Ministry, the deal is still possible. However, much remains to be done. 

Dave Ramsden, Bank of England Deputy Governor, removed the possibilities of using negative rates in the short term. This provided additional support for the British Pound. 

UK macroeconomic calendar was empty at the beginning of the week. The country releases mortgage approvals and economic data for August. The numbers are forecast to be smaller. 

The dollar dropped on hopes of a tax agreement in the US, awaiting the presidential debate

The dollar was going down in a risky mood on Tuesday. Negotiations between Republicans and Democrats resume in Washington. Nancy Pelosi, the United States House of Representatives speaker, offers a new deal worth $2.2 trillion.

Reported deaths from coronavirus have reached the grim one million, with cases rising rapidly in Europe and resuming their rise in the US.

On Tuesday, the market was awaiting the first presidential debate of President Donald Trump and his rival Democratic candidate Joe Biden. Trump has weaker votes in polls; however, Biden is considered to be the worst debater. The narrative emerging from the event will have a strong influence on the markets. 

According to FiveThirtyEight project’s statistical analysis, Joe Biden has a 76% chance of winning. Meanwhile, the Economist forecasts an 85% chance for the Democrat. Biden is around 7 points ahead of Trump on various averages in the national vote.