GBP price, news and analysis:
- Wednesday’s mini bill presented by UK Chancellor of a Exchequer Rishi Sunak has strengthened GBP/USD and a arise now looks set to continue.
- However, a span is looking overbought near-term so there could now be a duration of converging before a stand resumes.
GBP/USD opinion certain after summer statement
UK Chancellor of a Exchequer Rishi Sunak’s mini budget, presented Wednesday, has given GBP/USD a renewed lift and a span could good allege further, nonetheless maybe usually after a near-term duration of consolidation.
The package of measures announced by Sunak in his summer matter totaled £30 billion and was designed to boost a British economy after a unemployment caused by a lockdown measures imposed to opposite a mercantile impact of a coronavirus pandemic.
That’s a comparatively tiny sum compared with a £500 billion cost of a UK bank bailout in 2008, a cost of a HS2 high-speed rail plan – distributed during around £75 billion – and a estimated £205 billion cost of replacing Trident, a UK’s chief program. The new measures will also have to be paid for in due march but, for now, a package will expected continue to support GBP.
GBP/USD Price Chart, One-Hour Timeframe (June 29 – Jul 9, 2020)
Chart by IG (You can click on it for a incomparable image)
GBP is also looking certain opposite currencies like a Euro, with EUR/GBP expected to continue to trend lower. GBP/AUD, GBP/NZD and GBP/CAD are looking perkier too after a prolonged slip that began in early April. Note, though, that GBP/USD is looking overbought near-term, with a relations strength index (RSI) tighten to 70 on a hourly draft above.
Looking serve ahead, there are indeterminate signs of swell in a UK-EU talks on their post-Brexit relationship, and that too has a intensity to strengthen Sterling.
We demeanour during currencies frequently in a DailyFX Trading Global Markets Decoded podcasts that we can find here on Apple or wherever we go for your podcasts
— Written by Martin Essex, Analyst and Editor
Feel giveaway to hit me on Twitter @MartinSEssex