GBP/USD jumps from below 1.1700 to the 1.1850 zone
|- Pound erases losses against USD, EUR and CHF.
- Wall Street indexes up by more than 3%, after having on Tuesday the best day in 87 years.
The GBP/USD pair bounced sharply, rising more than two hundred pips from the daily low and it is back in positive territory for the day. The bounce took place amid a decline of the US dollar and as Wall Street extends gains. Cable had bottomed out at 1.1633 and recently tested 1.1840/50. As of writing it trades at 1.1800/10, modestly higher for the day.
DXY tumbles to fresh lows
Equity prices in the US broke higher over the last hour. The Dow Jones is up 6% and the Nasdaq 3.1%. US yields are falling on Wednesday, with the 10-year one standing at 0.80%. As Wall Street jumped to fresh highs, the US Dollar Index broke lower. The DXY trades at 101.15, about to test the 101.05/10 support (Mar 20 & 23 lows), down 0.88%.
The weaker greenback boosted GBP/USD back to positive territory. Risk appetite across financial markets on Wednesday favors particularly main European and emerging market currencies.
Economic data from the UK (inflation) and from the US on Wednesday was mostly ignored by market participants. On Thursday, the Monetary Policy Committee of the Bank of England will announce its decision and will release the minutes of this meeting and also the minutes from the March 19 emergency meeting. In the US, initial jobless claims number is expected to show a large increase.
Technical levels
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.