- GBP/USD failed to capitalize on the overnight strong rebound of around 130 pips.
- Resurgent USD demand exerted some pressure amid concerns over coronavirus.
The GBP/USD pair maintained its offered tone near session lows, around mid-1.2300s, and had a rather muted reaction to the UK macro data.
The pair failed to capitalize on the previous day's goodish intraday bounce of around 130 pips – back closer to the key 1.2500 psychological mark, or two-week tops – and met with some fresh supply on Wednesday amid resurgent US dollar demand.
As investors looked past the Fed's overnight move to allow foreign central banks to exchange their holdings of the US Treasuries for overnight dollar loans, the greenback managed to regain traction amid a fresh wave of the global risk-aversion trade.
Despite efforts by major central banks and governments across the world, concerns over the economic fallout from the coronavirus pandemic continued underpinning the USD's demand as the global reserve currency and exerted some pressure on the major.
Meanwhile, Wednesday's release of the final UK Manufacturing PMI, which was revised down to 47.8 in March versus 48.0 estimates earlier, did little to meaningful impetus, with the USD price dynamics turning out to be an exclusive driver of the pair's momentum on Wednesday.
Later during the early North-American session, the release of the US ISM Manufacturing PMI – though is unlikely to be a game-changer – might influence the USD and assist traders to grab some short-term opportunities.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.