News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Expected: $0.97B Previous: $0.18B
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Evergrande shares jump as much as 32%, with over 240 million shares traded -BBG
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • PBOC injects net 110b Yuan in open market operations -BBG
  • RT @BrendanFaganFx: Hang Seng, ASX 200 May See Relief After Fed. Evergrande Set for Restructuring? #Evergrande #HangSeng #FOMC Link: http…
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • Chinese estates' Evergrande loss assumes all shares sold -BBG #Evergrande
  • RT @FxWestwater: Australian Dollar Fights FOMC-Charged US Dollar After Upbeat PMI Data Link: $AUDUSD…
  • Heads Up:🇯🇵 Foreign Bond Investment (18/SEP) due at 23:50 GMT (15min)
British Pound Gains, US Dollar Sinks Despite IMF and Bank Warnings

British Pound Gains, US Dollar Sinks Despite IMF and Bank Warnings

Daniel Dubrovsky, Strategist

British Pound, GBP/USD, US Dollar, Wall Street, IMF, Earnings – Asia Pacific Market Open

  • British Pound gains as haven-linked US Dollar sinks and stocks soar
  • Markets brushed aside economic warnings from IMF and US banks
  • GBP/USD uptrend in focus, APAC stocks may rise as Aussie gains

British Pound Gains as US Dollar Sinks and Wall Street Bounce Continues

The British Pound was one of the best-performing major currencies as the haven-linked US Dollar was the worst. Investor sentiment rebounded from Monday as the Dow Jones and S&P 500 closed 2.39% and 3.06% higher respectively. The aggressive bounce on Wall Street off last month’s low continues despite a slew of warnings about the future of economic health.

Over the past 24 hours, the International Monetary Fund (IMF) released its latest world economic outlook report. The institution forecasted that the globe may see the deepest recession since the Great Depression almost a century ago. Meanwhile earnings season kicked off as major US banks envisioned a rough economic recovery. While the S&P 500 climbed, financial stocks relatively disappointed as well as energy ones.

Rather the focus for investors seemed to remain on slowing US coronavirus case growth despite the rise in fatalities. Investors often look to the world’s largest economy as a proxy for global growth. In this regard, markets may be betting on a sooner-than-anticipated reopening of businesses. Meanwhile major local airline stocks received a boost in afterhours trade as the Treasury reached an agreement on aid for large carriers.

Tuesday’s Asia Pacific Trading Session

Asia Pacific benchmark stock indexes may follow Wall Street higher on Wednesday. During Trump’s daily press briefing, he hinted at efforts to reopen the economy. He said that he will authorize each state governor to implement a plan and that some may reopen before May 1.

Prior to his press conference, Anthony Fauci – the director of the National Institute of Allergy and Infectious Diseases - said the target date is “a bit overly” optimistic for many parts of the nation. An upbeat session may bode well for the growth-linked Australian Dollar. This may also keep pressuring the US Dollar.

British Pound Technical Analysis

The British Pound continues to adhere to key rising support against the US Dollar – as expected. On the GBP/USD 4-hour chart below, this is the pink line that was formed when the pair bottomed in March. The pair may be on its way to retest lows from early last month which could make for an inflection point between 1.2726 – 1.2769. A close under rising support exposes 1.2485.

GBP/USD 4-Hour Chart

British Pound Gains, US Dollar Sinks Despite IMF and Bank Warnings

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.