The pound against the US dollar has seen a rebound back above 1.24 on the interbank exchange rate from the lowest level we saw in the market at 1.1409 on the 19th March 2020. This represents nearly a 10 cent movement from the low seen just over a week ago and the biggest movement in many years.
US Sees Largest Number of COVID-19 Cases, Is the Pound to Dollar Forecast to Go Higher?
The latest coronavirus statistics is that the US has the highest number of confirmed cases with the global pandemic now affecting over 530,000. The US dollar remains under pressure and continues to weaken on falling US yields. Economic data from the US continues to show just how dramatic the economic impact of the coronavirus is affecting the US economy with consumer confidence suffering the largest decline since 2008. Regarding Covid-19, the US surpassed China in confirmed cases.
After the $2 trillion stimulus package was passed by the senate it is expected to be passed by the House today. US data released today shows the Michigan Consumer Expectations for March came in lower than expected at 79.7 versus a forecast 85.3. The Michigan consumer sentiment for March also came in slightly lower than expected at 89.1 versus a forecast 90.
Federal Reserve Bank of Atlanta, President Raphael Bostic is expected to speak this evening at 6pm. His public engagements are often used to drop subtle clues regarding future monetary policy. It is widely expected that there could be further hints of stimulus packages to support the US economy that might well see the US dollar weaken further.
Data Releases Next Week for GBP and USD Forecasts
Next Monday, the market will be closely watching UK Nationwide House Purchasing Index (month on month) that is forecast at 0.3%. UK growth domestic product is a key indicator to look out for and is forecast at 1.1% year on year for the 4th quarter of 2019.
US data to look out for on Monday include the Chicago purchasing managers index for March currently forecast at 40, and the Conference Board consumer confidence for March currently forecast at 111.5.
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