British Pound (GBP) Latest: GBP/USD Outlook Brighter, Sentiment Improves
GBP price, news and analysis:
- Chinese trade data for March exceeded expectations, boosting market sentiment generally.
- GBP is one of the beneficiaries, along with other ‘risk-on’ currencies including AUD and NZD.
- Now, 1.30 is in the frame as a long-term target for GBP/USD.
GBP/USD Extends Advance
Risk-on currencies including GBP, AUD and NZD are advancing against the USD after the latest Chinese trade data showed exports and imports both exceeding the expectations of analysts polled by the news agencies. The numbers showed exports down 6.6% in March, rather than the forecast -13.9%, and imports lower by 0.9% rather than the predicted -9.8%.
Along with hopes that the coronavirus pandemic may be close to peaking, the start of measures being eased in countries like Austria and Spain, and central bank and government stimulus, a ray of optimism has returned. That has extended the climb in GBP/USD that began three weeks ago, bringing the early March high above 1.30 into focus as a long-term target.
GBP/USD Price Chart, Four-Hour Timeframe (March 4 – April 14, 2020)
Chart by IG (You can click on it for a larger image)
The Federal Reserve’s $2.3 trillion of stimulus measures announced the day before the Easter break have also helped other currencies advance against the US Dollar ahead of a batch of US corporate earnings data due this week.
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--- Written by Martin Essex, Analyst and Editor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.