The pound to US dollar exchange rate has rallied higher this morning with rates moving towards 1.26 for the GBPUSD pair. The pound spiked higher after UK Prime Minister Boris Johnson left hospital as his coronavirus symptoms improved. With little economic data for the UK today focus will likely centre on how the government continues to respond to coronavirus developments.
It has been reported that France is to extend its lockdown period until 11th May and Britain is expected to announce a similar policy later this week. For the time being the global economic outlook remains particularly uncertain which only adds to the volatility for GBP vs USD exchange rates.
The number of confirmed Covid-19 cases his now approaching 2 million but there is some hope amongst investors that the curve is starting to flatten with the number of new infections slowing. Of course any sudden spike in numbers could change things very quickly and high volatility for GBP to USD may continue.
Those looking to buy or sell dollars would be wise to consider taking the uncertainty out of the volatile currency markets when it is almost impossible to predict the direction of travel in these very uncertain times.
Economic Data That May Impact GBPUSD Exchange Rate
This afternoon will see the release of international trade data and could prove significant for dollar exchange rates. The US China trade war was one major issue before Covid-19 so today’s figures may signal the future path for dollar exchange rates.
Meanwhile in the US, unemployment continues to soar with unemployment expected to increase to over 10%. Thursday will see the release of US continuing jobless claims which could see some market volatility on the back of it. There have been some staggeringly high figures in recent weeks highlighting how much of an impact Covid-19 is having on the US jobs market.
The International Monetary Fund (IMF) meet today for their Spring meeting albeit virtually where it is expected it will reduce its growth forecast for 2020. G20 finance ministers and central bank governors will also be meeting to discuss the impact of coronavirus and any measures that may be introduced to help economies recover going forward.
If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.