GBP price, news and analysis:
- Chinese trade data for March exceeded expectations, boosting market sentiment generally.
- GBP is one of the beneficiaries, along with other ‘risk-on’ currencies including AUD and NZD.
- Now, 1.30 is in the frame as a long-term target for GBP/USD.
GBP/USD Extends Advance
Risk-on currencies including GBP, AUD and NZD are advancing against the USD after the latest Chinese trade data showed exports and imports both exceeding the expectations of analysts polled by the news agencies. The numbers showed exports down 6.6% in March, rather than the forecast -13.9%, and imports lower by 0.9% rather than the predicted -9.8%.
Along with hopes that the coronavirus pandemic may be close to peaking, the start of measures being eased in countries like Austria and Spain, and central bank and government stimulus, a ray of optimism has returned. That has extended the climb in GBP/USD that began three weeks ago, bringing the early March high above 1.30 into focus as a long-term target.
GBP/USD Price Chart, Four-Hour Timeframe (March 4 – April 14, 2020)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | 18% | -17% | 0% |
| Weekly | 16% | -18% | -2% |
The Federal Reserve’s $2.3 trillion of stimulus measures announced the day before the Easter break have also helped other currencies advance against the US Dollar ahead of a batch of US corporate earnings data due this week.
Starts in:
Live now:
Apr 14
( 10:04 GMT )
Recommended by Martin Essex, MSTA
Trading Sentiment
A Brief History of Major Financial Bubbles, Crises, and Flash-crashes
We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
— Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
Be the first to comment