US Dollar Weakens Against the Pound After Further US Jobless Claims

Pound to Dollar Rate Choppy Ahead of BoE Meeting

The Pound has started to fight back vs the US Dollar over the last few days and had a huge recovery vs the Greenback yesterday. The US confirmed that 3.28million workers filed for unemployment insurance following the recent virus outbreak.

GBPUSD exchange rates managed to break just above 1.22 which is approximately 8 cents higher than the recent lows seen earlier this month. Indeed, the US Dollar hit its best level vs the Pound in 35 years creating some excellent opportunities to sell US Dollars to buy Pounds recently.

US Has the Most Coronavirus Cases

The US has now confirmed that it has more cases than China with over 85,000 positive tests. However, the amount of fatalities is at around 1,300 compared with that of both China and Italy. US President Donald trump has claimed that it is because they are testing more than other countries.

According to Vice-President Mike Pence more than 552,000 tests have been carried out in all the 50 states across the US. Trump has also claimed that he wants to ‘reopen’ the US by 12th April but with the jobless claims going so high and the virus spreading as much as it has this could be wishful thinking.

However, Trump has said that his comments may have been subject to mis-interpretation. He is planning to release social distancing guidelines in order to reduce restrictions on movement. If this is the case we could see some parts of the US open quicker than others, particularly in some states where there is a smaller population per square mile.

It appears as though Trump has received some support from one Democrat. Governor Andrew Cuomo of New York has suggested that it may be a better idea to introduce a ‘get-back-to-work-strategy’ as ‘the younger people could have been exposing the older people to an infection.’

Looking Ahead

Later today the US House of Representatives are due to vote on their stimulus plan which involves a relief stimulus package of USD$2trillion and this could cause further movement for US Dollar exchange rates.

If you would like to discuss an upcoming USD exchange, please contact me directly using the form below. I’ll be happy to get in touch personally and discuss your enquiry.