GBP/USD: Gaining some positive traction
|GBP/USD ended in the red for the third consecutive session on Thursday. Recovery in the global risk sentiment helped the cable to gain some traction on Friday, according to Haresh Menghani from FXStreet.
Key quotes
“Worries over the economic fallout from the coronavirus pandemic continued boosting the greenback's status as the global reserve currency.”
“The intraday slide picked up some additional pace and dragged the pair back closer to the overnight swing low after the BoE slashed interest rates to 0.1%.”
“The UK central bank also announced to increase its holdings of the UK government and corporate bonds by £200 billion, taking the total level of QE to £645 billion.”
“The BoE move led to a modest recovery in the global risk sentiment and prompted some USD profit-taking, helping the pair to gain some positive traction during the Asian session on Friday.”
“In absence of any major market-moving economic releases, the cable remains at the mercy of the broader market risk sentiment and the USD price dynamics.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.