GBP/USD struggles for clues, focus on US Jobless Claims, coronavirus
|- GBP/USD alternates gains with losses.
- The UK’s coronavirus cases marked the record hike of 563 the previous day.
- Fitch Ratings has taken rating action on 18 UK banking groups.
Amid a lack of fresh catalysts, GBP/USD keeps eyes on the coronavirus (COVID-19) clues while flashing mild gains of 0.10% to 1.2385 during the pre-London open on Thursday. In addition to the virus headlines, the US Jobless Claims will also be the key to follow.
The UK government is struggling to justify their efforts in taming the pandemic as the death toll registered the biggest spike the previous day. As per the official data published on Wednesday, the total number of confirmed coronavirus infections rose to 29,474 as of morning from 25,150 on Tuesday and the death toll increased to 2,352 from 1,789.
Following this, the UK PM Boris Johnson shared the home view while saying, "this has been a sad, sad day".
It should also be noted that the virus pushed global rating agency Fitch towards taking actions on 18 UK banking groups to reflect the downside risks to their credit profiles, as per Reuters.
The British policymakers are jostling with the disease control the recently ordered nearly two million testing kits from China, half of which will arrive this week even though officials are still 'evaluating' accuracy of kits said the UK’s Daily Mail.
On the other hand, the US cases crossed the 200,000 mark and pushed President Donald Trump to reiterate his grim words. Further, the Fed also took measures to keep large banks liquid.
Although the US and the UK government’s respective policy measures to combat the disease will be the key for near-term direction, the US Jobless Claims will also be important to watch. “US initial jobless claims for the week to 28 March are due. Following a record, 3.283 million claims in the week to 21 March, the Bloomberg median forecast is for an even more stunning 3.70 million claims were lodged this week (+/- 1 standard deviation forecasts 2.577mn to 4.883mn). Continuing claims for the week to 21 March are seen jumping from 1.8mn to 4.94mn,” said Westpac.
Technical analysis
A short-term ascending triangle highlights 1.2425 and 1.2355 as the near-term key levels.
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