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GBP Forex Market Pushes Higher as Euro Falters

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GBP
  • Pound Higher With Bailey Speech Awaited
  • Euro Sluggish on German IFO Data
  • Another Bumpy Opening for US Markets

Sterling is forging higher today on the back of continued hopes for a strong US stimulus package, while the reduction in COVID cases also lends favorably as a support. Neighbors in Europe though are still struggling. This is reflected in disappointing German economic data that has impacted Euro strength in the market. The currency is in retreat from previous high points. On the US side, there was a mixed opening for markets as investors still try to position themselves for a Biden presidential era.

Case Reduction Helps Pound Move Higher

COVID-19 cases have continued to dip in the UK. This has been seen as a driver behind some of the optimism of those forex trading the Pound. It has now moved higher to above the $1.37 mark against the Greenback. The consistent drop in cases, albeit as President Biden reinstates a travel ban on those from the UK and Ireland, comes amid a quickening up of the vaccine distribution in Britain too.

More than 1 million doses were administered over the weekend bringing the total closer to 7 million. This level of improving efficiency has also worked to bolster the Pound with many traders waiting for an address later today from Bank of England Governor Andrew Bailey. Though the coronavirus news is the main proponent at present, eyes remain trained on the US stimulus package that would undoubtedly bring benefits for the UK and Sterling both.

Euro Slips on Disappointing Data

The Euro on the other hand remains in something of a retreat. It was backed off by disappointing data from business sentiment in Germany. This is measured in the region’s powerhouse economy but the IFO Business Climate Index. The figure has fallen to 90.1 which was more than analysts had forecast.

Indicators for manufacturing, services, and trade all took a tumble as the reported figure brought the Euro downwards closer to $1.21. While forex brokers remain concerned, the wider markets in Germany appeared unaffected, the DAX and CAC40 both posting slight gains. These are more than likely also being given confidence by the presumed American stimulus deal which many banks on as an incoming certainty.

US Markets Mixed at Opening Bell

In a huge week for earnings in the US with many of the economic big-hitters to deliver quarterly results, the opening bell on Wall Street brought a mixed bag. The tech-heavy NASDAQ is more than 150 points higher with loft expectations on heavyweights such as Apple to deliver big numbers. On the other side, the Dow Jones slipped more than 100 points.

Markets are coming off another winning week where the NASDAQ in particular impressed. Hopes are high and riding on continued positive earnings from the big names as well as delivery of the huge $1.9 trillion stimulus package promised by President Biden even though it faces opposition on the Republican side. This is a key driver for stock trading and forex alike.

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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