|Day's Range||1.213 - 1.248|
|52 Week Range||1.1477 - 1.3510|
British Prime Minister Boris Johnson has tested positive for coronavirus but will continue to lead the nation’s response to the pandemic from self-isolation.
U.K. stocks were hammered on Friday bringing a three-day rally to an abrupt end as global coronavirus cases spiralled and prime minister Boris Johnson tested positive.
The British pound initially pulled back during the week but found enough support at the 1.15 level to cause a significant bounce. At this point, the market is trying to wipe out the losses from the previous week.
The British pound went back and forth during the trading session on Friday as the market seem to have run into a bit of resistance. If you’ve been following my analysis, you know that I had suggested that the 1.2250 level would cause a few headaches.
U.K. Prime Minister Boris Johnson has tweeted that he has tested positive for coronavirus. "Over the last 24 hours I have developed mild symptoms and tested positive for coronavirus. I am now self-isolating, but I will continue to lead the government's response via video-conference as we fight this virus," he said.
After a sharp drop in the pound to dollar exchange rate last week, the pair has recovered almost the entire loss this week. The question at this stage is – will the momentum continue?
China’s industrial profits tested risk appetite early on, with stats later today unlikely to have a material impact as the governments battle on.
The British pound has rallied significantly during the trading session on Thursday, to break above the 1.20 level. By doing so, it looks as if we are trying to make a significant turnaround. However, there is a lot of resistance in this region.
The Bank of England voted unanimously to keep interest rates at 0.1% and maintain its £200 billion program of buying UK government bond and sterling non-financial investment-grade corporate bond purchases. "Regarding the impact of asset purchases, gilt yields fell significantly following the previous week's special MPC meeting and the commencement of additional gilt purchase operations from 20 March. If needed, the MPC can expand asset purchases further," the central bank said.
GBP/USD made a run towards the psychological 1.20 handle yesterday but sold off aggressively from slightly ahead of the level, continuing to display volatile price action.
The BoE and ECB will garner some attention, though expect updates from Capitol Hill and U.S weekly jobless claims figures to steel the show.
The British pound rallied significantly during the trading session on Wednesday, reaching as high as the 1.20 level. However, that area has caused resistance and we have pulled back from it yet again.
Service sector activity took a dive, manufacturing sector likely to struggle further. As China comes out of lockdown, social unrest elsewhere could become an issue.
The U.S. dollar loses ground against the British pound as markets hope that the new U.S. coronavirus aid package will provide major support to the economy.
The U.S. dollar has traded lower Wednesday, as currency investors take comfort in the agreement reached over a hefty stimulus package by the U.S., and look to get into currencies perceived as more risky. Senior Democrats and Republicans in the divided U.S. Congress said late Tuesday they had struck a preliminary deal on a $2 trillion stimulus package to limit the economic damage from the coronavirus pandemic. At 4:50 AM ET (0850 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 101.600, down 0.6% on the day and down over 2% from Monday's high.
The British pound rallied again during the trading session on Tuesday, bouncing from the 1.15 level again. This is an area that is obviously trying to form some type of base.