logo |

News

    Home   >     Original    >     Main body

    GBP/USD Outlook Ahead of BoE Rate Decision, US Jobless Claims

    Abstract:The British Pound may face liquidation pressure ahead of the BoE rate decision at the same time that traders may be scrambling to the haven-linked USD after jobless claim data is released.

      British Pound Analysis Ahead of BoE Rate Decision, Bond Purchase Program, US Jobless Claims Data – TALKING POINTS

    •   British Pound may face severe selling pressure ahead of BoE rate decision

    •   Gloomy US jobless claims data may catapult USD higher on haven demand

    •   GBP/USD could capitulate ahead of key resistance as it trades at 1985 lows

      ASIA-PACIFIC RECAP

      The Australian and New Zealand Dollars plunged over one percent against the Greenback along with US equity futures early into Asias Wednesday trading session. The catalyst appeared to be concern about delays regarding the implementation of a $2 trillion fiscal plan from the government overseeing the largest economy in the world. Sentiment in Asia was also soured by dismal advanced GDP data from Singapore.

      BANK OF ENGLAND RATE DECISION, BOND PURCHASING PROGRAM

      The British Pound may fall following the Bank of England rate decision and announcement regarding the central banks bond-purchasing program. The benchmark lending rate is anticipated to stay 0.10 percent with expectations purchases will increase to 635 billion GBP, up from the prior 435 billion. This liquidity-emergency mechanism is known as the Contingent Term Repo Facility or CTRF for short.

      The central bank will be conducting another operation of this kind on April 2. Even if interest rates remain unchanged, the size of the CTRF and commentary from officials may pressure the GBP. This comes despite massive stimulus measures announced by Chancellor of the Exchequer Rishi Sunak which involve paying 80 percent of wages to those unable to work during the coronavirus pandemic.

      US JOBLESS CLAIMS: WHAT TO EXPECT

      The US Dollar may recover some of its losses vs the British Pound and its G10 counterparts if US jobless claims data – with estimates for March at 1,640,000 – spurs haven demand and pushes the Greenback higher. However, risk aversion from the employment data may be offset by the ratification of a $2 trillion fiscal stimulus plan if both the Senate and House are able to find common ground.

      GBP/USD TECHNICAL ANALYSIS

      GBP/USD may shy away from testing former support-turned-resistance at 1.1959 and may even plunge below the 1985 swing-low at 1.4512. The upcoming fundamental factors may be the necessary inputs to catalyze an aggressive selloff in GBP/USD after the pair got some respite from a weakened US Dollar. However, that dynamic may quickly shift and push Cable into uncharted territory.

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.