GBP/USD Trades Steady After Making Gains as Market Sentiment Improves
Arslan Butt • 1 min read
On Friday, the Pound continues to trade steady against the US dollar after making gains following the Fed unveiling $2.3 trillion worth of financial support for local governments and small and mid-sized businesses affected by the coronavirus pandemic. At the time of writing, GBP/USD is trading around 1.246.
While the Fed’s latest moves sent the US dollar lower, and drove bullishness in GBP/USD, the Pound also received some interest on an improvement in the overall market sentiment. Expectations of a slowdown in the rise of coronavirus cases worldwide helped ease tensions in markets and sent investors away from the safety of the US dollar and into riskier currencies, which helped support the GBP’s gains.
GBP/USD also received a boost after news reports revealed that PM Boris Johnson was showing signs of improvement after he had been hospitalized for COVID-19. The Cable received additional support after the BOE agreed to fund the British government’s efforts for tackling the pandemic without an overdraft, a move that could offer great support to the struggling economy.