GBP/USD, EUR/GBP and GBP/CAD Prices and Outlook - UK Webinar
Sterling (GBP) – GBP/USD, EUR/GBP and GBP/CAD Prices and Analysis:
British Pound (GBP) – Looking to Consolidate Gains
A sharp sell-off followed almost instantly by a sharp rebound in GBP-pairs last week, highlights the extreme volatility in the foreign exchange markets at present. GBP/USD was aided by a sell-off in the US dollar over the week as the Fed continued to inject liquidity into the market, while EUR/GBP fell as data out of the Eurozone warned of a deepening recession ahead. Meanwhile GBP/CAD jumped at the end of the week when the Bank of Canada slashed its lending rate by 50 basis points to just 0.25% at an emergency meeting on Friday. Added to that, the Canadian dollar continues to suffer from lowly oil prices which, as yet, show no signs of stabilizing. Sterling also pushed higher against the New Zealand and the pair seemed to have formed strong support over the recent weeks.
All the daily price charts are showing indecision candles today, which can either suggest a sharp breakout is imminent or that a consolidation area is being formed. Volatility remains extremely high across the board.
Data out over the week is a mixture of February and March readings, with only the latter seen as potential market moving events. The most important figures this week are out of the US with weekly initial claims on Thursday and the monthly US jobs report on Friday. Both need to be closely watched, especially after last week’s initial claims release showed nearly 3.3 million claimants, up from 281k the week before.
GBP/USD Daily Price Chart (August 2019 – March 30, 2020)
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What is your view on Sterling (GBP)– bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.