Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
British Pound (GBP) Latest: GBP/USD Stable Ahead of Biden Stimulus Package

British Pound (GBP) Latest: GBP/USD Stable Ahead of Biden Stimulus Package

What's on this page

GBP price, news and analysis:

  • GBP/USD, along with most of the financial markets, is unlikely to move far this session ahead of an expected speech by US President-elect Joe Biden on his plans to boost the US economy.
  • A report has suggested that his fiscal stimulus package could be as large as $2 trillion.
  • The markets are also waiting for a speech by Federal Reserve Chair Jerome Powell, listening out for any hints about when the Fed will start tapering its monetary stimulus program.
Advertisement

GBP/USD on hold ahead of Biden and Powell

GBP/USD and the rest of the financial markets are unlikely to move far this session ahead of a possible announcement by US President-elect Joe Biden of his plans to stimulate a US economy ravaged by the coronavirus pandemic. According to CNN, his aides have told their Congressional allies to expect a Covid-19 relief package with roughly a $2 trillion price tag.

In addition, the markets are looking ahead to a speech at 17:30 GMT by Federal Reserve Chair Jerome Powell, watching out for any hints at when the Fed will begin tapering its asset purchases. With no UK data scheduled, these events in the US will likely determine the next move in GBP/USD, which remains in its long-term trend higher.

Here’s my top tip for the first quarter of this year: long GBP/NZD

GBP/USD Price Chart, Daily Timeframe (September 14, 2020 – January 14, 2021)

Latest GBP/USD price chart.

Source: IG (You can click on it for a larger image)

GBP Forecast
GBP Forecast
Recommended by Martin Essex, MSTA
Download our fresh Q1 GBP forecast
Get My Guide

More generally, governments across Europe are currently tightening their coronavirus restrictions and the prospect of more stimulus in response to the economic pain caused by the pandemic, along with vaccination programs and rising yields on US Treasury notes and bonds, will likely continue to be the main drivers of the US Dollar and currency pairs such as GBP/USD.

GBP/USD Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -8% -2% -6%
Weekly -6% 9% 0%
Learn how to use sentiment in your trading strategy
Get My Guide

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.

DISCLOSURES