GBP/USD has been on the rise as coronavirus fears recede everywhere. As FXStreet analyst’s Yohay Elam notes, the sterling is finding support from the Bank of England (BoE) and UK GDP data.
“Mark Carney, Governor of the Bank of England, has compared coronavirus’ economic damage to previous ones and sounded calm. Carney also hailed the resilience of the UK’s financial system. His words contributed to keeping the pound bid.”
“Jerome Powell, Chairman of the Federal Reserve, said that the bank is closely monitoring the potential spillovers from China. However, he also sounded calm about the strength of the economy, adding that there is no reason to see the expansion ending soon.”
“The third factor behind cable’s advance comes from UK Gross Domestic Product figures for the fourth quarter. The British economy stagnated on a quarterly basis but yearly growth exceeded estimates with 1.1%.”
“Powell continues testifying today and he may move markets, in addition to coronavirus headlines and Brexit speculation.”