Overnight GBPUSD continued to break higher and continued its bullish run, now sitting at a 5-month high from the start of March. This is over a 13.5% gain from the lows that were seen during the worst of the Covid induced lockdown, which swept around the world. The UK economic recovery is starting to gather pace, as consumers return to normality and more employees return back to work from the furlough scheme. This morning, UK Chancellor Rishi Sunak has also announced that Westminster will be launching a GBP 500m scheme to aid the recovery of the television and film industry. This will help to keep employees in work and target a reduction of potential unemployment after the furlough plan has ended. On the other hand, Covid related fatalities continue to rise in the US, hitting new records for the wrong reason.
Markets will turn their attention to the Federal Reserve meeting today, as the interest rate decision is expected to remain unchanged. Traders, as always, will be looking to the following statement and conference to gauge where the US policy makers are heading from here. The Democrats and Republicans are also caught in a battle for support of the population, as they plan for their next support scheme for the American people. Any positive breakthroughs could be enough to give the USD some strength, as we have recently seen in the Eurozone with the economic package agreed last week.
With GBPUSD currently sat above 1.2960, the next target level for buyers will be the 1.30 mark. Please reach out to your dedicated account manager to discuss a plan and take advantage of the situation, an order is always good to catch any momentary jumps higher.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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