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British Pound (GBP) Latest: GBP/USD Trend Higher Persists as Risk Appetite Improves

British Pound (GBP) Latest: GBP/USD Trend Higher Persists as Risk Appetite Improves

Martin Essex, MSTA, Analyst

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.
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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)

Latest GBP/USD price chart.

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.

Find out more here about non-farm payrolls and how to trade the data

Sterling remains in good shape against the Euro as well, as this week’s fractious trade talks between the UK and the EU continue.

Latest EUR/GBP price chart.

Chart by IG

We look at currencies 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

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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