GBP/USD Strengthens Over Better Than Expected GDP Report, Waning Coronavirus Concerns

GBP/USD is trading slightly bullish over the better than expected GDP data which released in the previous trading session, even as the risk

Written by: Arslan Butt • Wednesday, February 12, 2020 • 1 min read

• Last updated: Wednesday, February 12, 2020

GBP/USD Strengthens Over Better Than Expected GDP Report, Waning Coronavirus Concerns

Early on Wednesday, GBP/USD is trading slightly bullish over the better than expected GDP data which released in the previous trading session, even as the risk appetite improves in global markets over receding fears about the coronavirus outbreak. At the time of writing, GBP/USD is trading at around 1.295.

After weakening to the lowest levels of this year, the Pound received some relief on Tuesday after the GDP report revealed the Britain’s economy had managed to grow at 1.1% YoY during Q4 2019, coming in better than economists’ forecast for a reading of 0.8% instead.

While economic growth still remains weak in Britain, the recent report indicates a lower likelihood of further monetary easing by the BOE in the near future. In its last meeting the central bank had hinted that any decision to cut rates further would be influenced by possible changes in economic growth.

GBP/USD has also strengthened on the back of a weakening US dollar as a result of the improvement in the market sentiment over rising hopes that China will successfully managed to contain the coronavirus outbreak. As the mood in the market improves, the dollar’s safe haven appeal has reduced somewhat helping the Cable climb higher.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.