GBP/USD: Mildly bid above 1.2450 on Good Friday, focus on US CPI
|- GBP/USD registers modest gains as markets are inactive on a Good Friday holiday.
- UK PM Boris Johnson’s departure from ICU, broad US dollar weakness pleased buyers off-late.
- The coronavirus update, Brexit drama continues to offer background music, US CPI awaited.
With the Good Friday off in major global markets, GBP/USD remains modestly changed around 1.2465 during the early day moves. In doing so, the pair seems to cheer the UK PM Johnson’s exit from the Intensive Care Unit (ICU) amid a lack of major data/catalysts ahead of the US Consumer Price Index (CPI) figures.
During late-Thursday in the UK, the Tory leader was shifted from the ICU but kept in the hospital. No 10 said he "has been moved this evening from intensive care back to the ward, where he will receive close monitoring during the early phase of his recovery,” as per the BBC.
On the broader scale, Reuters said that total UK hospital deaths from COVID-19 rose by 881 to 7,978 as of 1600 GMT on April 8, the government said on Thursday.
As a result, the risk tone struggles between smile and cry as the UK jostles with the coronavirus (COVID-19) virus.
Also affecting the Cable were the pessimism surrounding Brexit date as the new Labour Party shadow Chancellor Anneliese Dodds urged ministers to beware putting "ideology over the national interest". On the other hand, the UK Express conveyed the headlines suggesting the Transition period delay could cost UK taxpayer £26 billion a year.
Elsewhere, the US Federal Reserve (Fed) Chair Jerome Powell anticipated downbeat economics during the second quarter (Q2) of 2020 before expecting the recovery in the second half of the year.
While portraying the risk-tone, Japan’s TOPIX recently recovered to 1,424, up 0.56%, whereas stocks in China remain mixed by the press time.
Given the lack of major data/catalysts ahead of the US data, investors may search for the coronavirus updates for intermediate direction. However, the expectedly downbeat US inflation figures for March could keep the pair strong.
Technical analysis
Buyers await an upside clearance of March 27 high surrounding 1.2485 to target 50-day and 200-day SMAs on the daily chart, respectively at 1.2560 and 1.2660.
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