British Pound (GBP) Latest: Wave of Optimism Boosts GBP/USD, FTSE 100
GBP price, news and analysis:
- An easing of coronavirus lockdowns, hopes the epidemic may be peaking, a rally in risk assets generally and continuing monetary stimulus are boosting both GBP/USD and the FTSE 100 index.
- Those trends look like continuing near-term as USD eases ahead of US GDP data and a monetary policy decision by the FOMC.
GBP/USD well placed for further gains
The British Pound and the FTSE 100 index of leading London-listed stocks are benefiting from a continuing improvement in risk appetite that is boosting riskier assets at the expense of safe havens such as the US Dollar. Moreover, those trends higher may well continue as the markets brace for US first-quarter economic growth figures and a monetary policy decision by the Federal Reserve.
US GDP is expected to have contracted by 4% though forecasts range from a modest 1% expansion to a giant 15% fall. As for the FOMC, that is expected to leave interest rates unchanged, with the Fed funds rate remaining at 0.0%-0.25%, although it is likely to continue its pledge to take any necessary action to boost the US economy.
That should keep riskier currencies like GBP, as well as global stocks, on the front foot, with further near-term gains possible.
GBP/USD Price Chart, Two-Hour Timeframe (April 7-29, 2020)
Chart by IG (You can click on it for a larger image)
FTSE 100 edging higher
The FTSE 100 was up by around 0.9% in early London trading Wednesday, seemingly unmoved by poor European corporate earnings figures from companies like Deutsche Bank and Airbus that were offset by AstraZeneca beating first-quarter profit estimates.
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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.