GBP price, news and analysis:
- The GBP/USD pair and the EUR/GBP cross will likely continue to trade sideways near-term.
- On the positive side, countries around the world are easing coronavirus restrictions and the US Federal Reserve is to begin buying corporate-debt exchange traded funds.
- On the negative side, there are fears of a second wave of Covid-19 and concerns too about new US-China trade tensions.
GBP/USD, EUR/GBP continue to trade sideways
The British Pound continues to trade in narrow ranges against both the US Dollar and the Euro, and will likely continue to do so as traders weigh up the easing of coronavirus restrictions against fears of a second wave of the pandemic preventing a full global economic recovery.
GBP/USD Price Chart, Two-Hour Timeframe (April 10 – May 12, 2020)
Chart by IG (You can click on it for a larger image)
In addition, news that the US Federal Reserve will begin buying corporate-debt exchange traded funds (ETFs) from today is being offset by an escalation in the US-China trade war, with President Donald Trump threatening to terminate the Phase 1 trade deal between the two countries agreed in January.
If you’d like to learn more about trade wars, you might find this DailyFX infographic useful.
EUR/GBP Price Chart, Two-Hour Timeframe (March 31 – May 12, 2020)
Chart by IG (You can click on it for a larger image)
Meanwhile, the economic damage being caused by the pandemic was highlighted Tuesday by news that China’s factory deflation deepened in April as the spread of the virus hit demand.
We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
