GBP/USD Down, Trading Cautious Before Budget Release - Forex News by FX Leaders
GBP/USD Down, Trading Cautious Before Budget Release

GBP/USD Down, Trading Cautious Before Budget Release

Posted Wednesday, March 11, 2020 by
Arslan Butt • 1 min read

GBP/USD has dropped below the key 1.30 level once again and is trading cautious early on Wednesday as markets await Britain’s budget due to be released today, especially updates on measures to protect the economy against risks of the coronavirus. At the time of writing, GBP/USD is trading at around 1.293.

In addition, GBP/USD also gave up its gains from the past couple of days as the US government proposed stimulus measures to protect its economy from the potential impact of the coronavirus. Meanwhile, markets have received no such clarity from the British government or the central bank, driving weakness in the pound.

Expectations are high that the new finance minister Rishi Sunak will unveil higher public spending measures in a bid to boost the economy, but it remains to be seen how effective they will be in countering the risks of the outbreak. Markets are also anticipating that the Bank of England could give in to pressure and ease rates, driving additional bearishness in GBP/USD.

So far, the BOE has held its interest rates steady despite other peers resorting to rate cuts in the wake of the growing economic threat of the coronavirus. However, Britain has confirmed over 370 cases of infection while the death toll has climbed to six so far, even as travel restrictions across the world also weigh on the sentiment.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments