- A nice bounce in equity markets helped GBP / USD gain some traction on Thursday.
- Nervousness over the coronavirus continues to benefit the safe-haven USD and limits the pair’s initial rally.
- Investors are waiting for the release of the US Q3 GDP Advanced Report to get some momentum.
The pair GBP/USD goes back around 40 pips from the daily highs and returns the initial profits, falling back below the 1.3000 level during the European session on Thursday. At the time of writing, the pair is largely unchanged on the day around the 1.2985 region.
The pair has failed to capitalize on the previous day’s rally from week-long lows and a subsequent move to the 1.3025 region Thursday, and has found new sales amid resurgent demand for the US dollar. Despite a good rally in the equity markets, concerns about the increase in the number of coronavirus cases they continued to benefit the US dollar as a world reserve currency.
Investors follow concerned that the imposition of new restrictions to curb the second wave of COVID-19 infections could derail the tepid global economic recovery. This, coupled with news of a second nationwide lockdown in the UK, has prevented GBP bulls from opening aggressive positions and limited GBP / USD initial rally amid lingering Brexit uncertainties.
However, the fall remains supported, at least for the moment, amid growing wariness over the outcome of the US presidential election in the next week. National polls have been indicating that Democratic candidate Joe Biden has an advantage over current Republican President Donald Trump, although the gap is narrow in certain key states.
There are no major economic data releases from the UK. Therefore, the focus of attention will be in the advanced report of the GDP of the third quarter of the USA that will be published at the beginning of the American session. Any significant divergence from expected numbers will influence USD price dynamics and help investors seize some significant opportunities.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
