Forex Marketz Daily Forex News – Fully Markets Update
Looking at the British pound on the above hourly MT 4 price action chart, the benchmark GBP/USD currency exchange rate is consolidating just below the key psychological level of 1.37.
Fundamentally British pound traders are focused on the U.S. dollar side of the coin. U.S. President-elect Joe Biden has just announced a $1.9 trillion pandemic related fiscal stimulus plan to bring life to an economy stricken by the coronavirus (Covid-19) pandemic.
This fiscal stimulus is badly needed to avoid long-term damage stemming from a deep pandemic recession. The U.S. economy is set to return to growth by the middle of 2021 as vaccines continue to roll out and their economy reopens.
Federal Reserve Chair Jerome Powell has said, overnight, that the American economy is still far from its inflation and employment goals that the central bank has set. Therefor the Fed is not even ready to even consider their monthly bond purchases.
“Now is not the time to be talking about exit,” from the $120 billion in monthly asset purchases that the Fed is buying monthly, Powell said. He was speaking during a web symposium with Princeton University.
“A lesson of the Global Financial Crisis is be careful not to exit too early, and by the way try not to talk about exit all the time…because the markets are listening,” Powell went on to comment. He also said that “the economy is far from our goals…and we are strongly committed…to using our monetary policy tools until the job is well and truly done.” He officially pushed back on any thoughts that Forex traders had about the Fed changing their asset purchases anytime soon.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action on the above hourly chart, the British pound found itself capped towards the upside by the psychological barrier at 1.37.
With that said, the GBP/USD Forex market has bounced off the 55 hour simple moving average around 1.3680 and could retackle 1.37 again.
A daily close above 1.37 opens the door to challenge 1.3776. On the downside, a daily close below 1.3676 opens the door for the psychological level in play at 1.3550.
