pound to dollar exchange rate took advantage and broke higher of a consolidation scheme that had contained in the month so far. “data-reactid =” 12 “> After showing strength last week, the US dollar fell back, weighed down by an increase in risk appetite. The pound-to-dollar exchange rate took advantage and outpaced the pace of consolidation that had been contained so far.
Price action at the start of the day signals a continuation of the upward trend that started in the second half of March, although data later in the day has an impact on short-term direction.
Weekly jobless claims figures will be released outside of the United States and are expected to impact dollar pairs. The last two reports have shown a significant increase in the number of new jobless claims filed every week and analysts expect this new trend to continue.
Aside from unemployment data, Fed Chairman Powell is expected to provide an update on the economy. The minutes from yesterday’s FOMC meeting revealed that the Fed was unanimous in its recent easing decisions, although it is unclear about the risks posed by the Coronavirus. Powell’s remarks today will follow a question and answer session and are expected to clarify the bank’s latest views.
The Bank of England announced today that it is ready to finance the government to meet the additional costs necessary in the wake of the virus epidemic. The government generally uses the bond market to finance its operations, but the BoE aims to compensate for any undue pressure on the markets by directly funding the government. The last time this type of emergency action was taken was during the 2008 financial crisis.
GBP / USD has passed a bullish flag pattern that indicates a further upside. “data-reactid =” 29 “> GBP / USD has passed a bullish flag pattern that signals a further bullish.
There is another obstacle at 1.2476 which kept the pair lower in late March and early April. If the GBP / USD pair manages to climb above, the next upward point of interest is 1.2740.
Resistance at 1.2476 can trigger a little setback. In such a scenario, the pair will have to hold a new test of the upper limit of the bullish flag to maintain the valid model. It is currently falling around 1.2360.
- GBP / USD outpaced the flag trend and is heading towards resistance which kept the pair down at the start of the month.
- The BoE has taken an emergency measure of direct government funding to help increase spending to combat the negative economic impacts of the virus.
article was originally published on FX Empire “data-reactid =” 36 “> This article was originally published on FX Empire