GBP/USD: Potential profit-taking could send the pound lower
|GBP/USD has been on the rise driven by US dollar weakness. Concerns about coronavirus and potential profit-taking could send the pound lower, in the opinion of FXStreet’s analyst Yohay Elam.
Key quotes
“The greenback has been suffering the Fed's open-ended QE program and Chairman Jerome Powell's ongoing commitment to support the struggling economy.”
“The market mood has been upbeat also due to the Senate's approval of the massive $2 trillion fiscal package. The House is set to begin a debate on the bill on Friday and it will likely turn into law over the weekend.”
“Stock markets seemed to take the labor market figures with a stride on Thursday, but S&P futures are on the back foot on Friday. If the three-day rally comes to a halt, the greenback has room to rise.”
“The University of Michigan's final Consumer Sentiment read for March is set to show another drop later in the day, but virus figures will likely have the upper hand.”
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.