The Pound Sterling kicked off Friday’s trading session on a losing streak which is quite pronounced on the GBP/USD currency exchange rate, paving the way to the U.S dollar’s strength.
The GBP/USD price performance on Friday morning demonstrated a noteworthy downturn as the bears pushed the price down. The bearish momentum is likely influenced by investor expectations of an unappealing UK Service Sector & US NFP.
The U.S has so far reported through its Non-Farm Payrolls or NFP that more than 700,000 people have lost their jobs due to the coronavirus pandemic which has had a huge impact on the global economy. However, the U.S dollar’s demand has managed to maintain thanks to the fact that the greenback is the global reserve currency and many banks have been using it as a safe haven currency.
Meanwhile, negative expectations from the UK Service Sector have caused selloffs for the GBP, thus sending the currency on free-fall. The UK economy has also suffered a great deal under the impact of the coronavirus. These effects have translated to the GBP’s poor performance over the past two days.
The GBP/USD has a brief bullish rally on Thursday as prices surged to peak at1.2475 during the morning trading session. However, the bears took over, sending the price of the currency pair tumbling down to the day’s low at 1.234 before a pullback saw the price surge to 1.2419. After that, the price has remained bearish and that momentum carried on into Friday with a deep decline taking place on Friday morning’s trading session.
The GBP/USD currency pair traded at 1.2257 at the time of this press. Job market data usually has a huge impact on currency performance and thus the impact on price movements on both the USD and the GBP. However, this time the markets have taken a bigger hit than expected as the coronavirus sweeps across the globe wreaking havoc. Many businesses have been forced to shut down, demand for some products has declined and normalcy at this point is something that exists as a blissful memory.