The British Pound has been relatively resilient over the past few months against the US Dollar, and this could be related to an upcoming vaccine trial. But the economy and the healthcare field are both showing signs of weakness, and any news from either will be detrimental to the British Pound.
If the vaccine proves successful, it will boost the British Pound. One of the reasons why the USD/GBP is so low today is because a vaccine trial in the United States is taking place. This is a very good indicator that the healthcare system is developing and evolving into something stronger, and it is affecting the prices of products and services across the board.
Also, currency price signals like this are important because they show what is happening in the global economy, and what the medical field is doing. And with the increasing cost of vaccines, we can expect to see the costs increase.
The news about the vaccine being tested in the United States came from the U.S. Food and Drug Administration. They are hoping that the study will help reduce the occurrence of several types of tuberculosis, which is the most common form of the disease.
There is a good reason why the price of this vaccine has dropped so much compared to the actual cost of manufacturing, as well as the size of the medical field. In the past, such vaccines were considered too expensive for mass distribution.
There were not enough research and development to prove they would work, and the price of the vaccine was much higher than the actual cost. However, the technology and potential to change this are available now, and the prices have come down.
It is no surprise that the GBP/USD is oversold at this time, given the current economic environment, but if this vaccine ends up helping get rid of a lot of cases of tuberculosis, it could change the overall price of goods and services on both sides of the Atlantic. The implications for the pound are also important, as the currency is very important for the British economy.
An important note: The GBP/USD is vulnerable to information and will continue to fluctuate according to changes in the UK and the US. So the recent news is not going to stay long-term, and the impact will be felt within a short period of time.
This is one of the factors why investors can invest in the currency without having to risk too much money. It is also similar to a short-term trend reversal, where the price reverses from its upward trend and then reverses again.
This will go on throughout the week and there is every chance that the GBP/USD will head down towards the level at which it started the week at. At this point, the GBP/USD may fall as low as $1.04.
However, if the US government grants a patent on the vaccine and the FDA decides that it can be taken to market, it will be very easy for the US Dollar to gain strength. This is where a short-term trend reversal may occur, but this depends on whether the vaccine actually works.
At this point, it is impossible to predict whether the GBP/USD will lose strength, or whether it will turn around and end up the same as it started. If this vaccine proves to be successful, it could change the way that we think about healthcare, and the price of medications may rise further.