GBP/USD: Gaining some positive traction

GBP/USD ended in the red for the third consecutive session on Thursday. Recovery in the global risk sentiment helped the cable to gain some traction on Friday, according to Haresh Menghani from FXStreet.

Key quotes

“Worries over the economic fallout from the coronavirus pandemic continued boosting the greenback’s status as the global reserve currency.”

“The intraday slide picked up some additional pace and dragged the pair back closer to the overnight swing low after the BoE slashed interest rates to 0.1%.”

“The UK central bank also announced to increase its holdings of the UK government and corporate bonds by £200 billion, taking the total level of QE to £645 billion.”

“The BoE move led to a modest recovery in the global risk sentiment and prompted some USD profit-taking, helping the pair to gain some positive traction during the Asian session on Friday.” 

“In absence of any major market-moving economic releases, the cable remains at the mercy of the broader market risk sentiment and the USD price dynamics.”