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GBPJPY Rebounds Amid Economic Concerns
The pound sterling went into a stiff sell-off as Britain grapples with its colossal public health crisis. As the economy is coming to a virtual halt amid the COVID-19 outbreak, the Bank of England cut interest rates to 0.1% to calm nerves.
The government has pledged “whatever it takes” to rescue battered industries. Markets responded favourably with the pound recouping some losses.
The pair pulled back after it broke below last August’s low of 126.50. The bounce is likely to run into selling pressures near the moving averages around 135.00.
Fears of the economic fallout from the coronavirus have put the greenback under the spotlight. Heightened uncertainty has led investors to exit global markets and convert their assets into the US dollar, bidding up its exchange rate in the process.
There is no sign of stabilization yet across markets and it is reasonable to believe that the dollar fever may carry on. The breakout above th...
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