GBP/USD: Waiting on the sidelines ahead of the BoE monetary policy update

Persistent USD selling bias helped limit the downside, rather attracted some dip-buying interest. The focus now shifts to the BoE and the US initial jobless claims, FXStreet’s analyst Haresh Menghani briefs.

Key quotes

“The greenback remained offered in the wake of the Fed's aggressive quantitative easing program. This coupled with the optimism over a massive $2 trillion US stimulus package dented the greenback's perceived safe-haven status against its British counterpart.”

“The uptick was further supported by mostly in line UK consumer inflation figures for February. From the US, the mixed release of the US Durable Goods Orders report failed to provide any respite to the USD bulls and remained supportive.” 

“Investors seemed reluctant to place any fresh directional bets, rather preferred to wait on the sidelines ahead of the latest BoE monetary policy update, scheduled to be announced later during the European session.” 

“The release of the highly anticipated US initial weekly jobless claims data should influence the USD price dynamics and further contribute towards producing some meaningful trading opportunities.”