GBP price, news and analysis:
- GBP/USD continues to steady, alongside other so-called “risk-on” assets, after the Federal Reserve’s promise to buy unlimited amounts of US Treasuries and mortgage-backed securities.
- The Fed’s move has calmed nerves for now, brightening the outlook for currencies such as GBP and AUD, and also crude oil and stocks, but the rally remains fragile.
GBP/USD steadies after Fed’s funding pledge
The US Dollar is easing back after the Federal Reserve’s promise of unlimited bond purchases eases market nerves, benefiting GBP/USD and other riskier assets such as the Australian Dollar, stocks and crude oil. Along with news that China’s Hubei province, where the coronavirus pandemic originated, will lift travel restrictions on people leaving the region as the epidemic there eases, the outlook now looks more positive.
However, the relative stability in GBP/USD remains fragile and, while further sharp falls now look less likely, there is little sign yet of a sustained long-term rally even if a deal is reached soon on a far-reaching coronavirus economic stimulus package that has been stalled in the US Senate as lawmakers argue over it.
GBP/USD Price Chart, One-Hour Timeframe (March 18-24, 2020)
( 11:03 GMT )
Recommended by Martin Essex, MSTA
Chart by IG (You can click on it for a larger image)
A poor set of purchasing managers’ indexes from Japan, France and Germany has also emphasized the negative impact of the coronavirus pandemic on the global economy and that will likely weigh on investor sentiment longer-term.
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— Written by Martin Essex, Analyst and Editor
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