British Pound (GBP) Latest: GBP/USD Trend Higher Persists as Risk Appetite Improves
GBP price, news and analysis:
- GBP/USD continues to trend higher as improved sentiment in the markets generally helps assets like stocks, crude oil and the currencies, like GBP, considered to be relatively risky.
- With little new domestic news to drive Sterling, it continues to benefit from signs a US fiscal stimulus program could be agreed, better US data and hopes of a vaccine breakthrough.
GBP/USD trend higher still in place
The advance in GBP/USD that began in the middle of last week remains in place, suggesting more upside for the pair, which seems to have established a near-term base above 1.29.
GBP/USD Price Chart, One-Hour Timeframe (September 23 – October 1, 2020)
Chart by IG (You can click on it for a larger image)
Like many other assets that benefit when market sentiment improves, GBP/USD is being helped by signs that a US fiscal stimulus program could yet be agreed. The government has put a new stimulus proposal to House Democrats worth more than $1.5 trillion, including $20 billion for the airline industry. That is still far from the Democrats’ $2.2 trillion proposal but is seen as a step in the right direction.
In addition, the ADP gauge of US employment in September came in higher than expected Wednesday, suggesting the non-farm payrolls data, due Friday, could also be better than predicted. Hopes are rising too that a vaccine to curb the Covid-19 virus could be close.
Sterling remains in good shape against the Euro as well, as this week’s fractious trade talks between the UK and the EU continue.
Chart by IG
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.