The US unemployment claims are out on Thursday at 15:30 MT time.
GBP: more stimulus
Information is not investment advice
GBP/USD has risen from 1.2940 to above 1.3000 in a strong bullish spike just now. That’s because the Bank of England expanded the quantitative easing beyond expectations. Specifically, the bong-buying program is increased by 150 billion pounds. The committee unanimously voted in favor of this measure with the strategic objective to keep the interest rate at 0.1%. The process of buying itself will take one year starting in January.
For the GBP, that’s definitely good news as the entire country is now in a partial lockdown, Brexit is moving slow, and the British economy is in an obvious slump.
In the meantime, the GBP keeps moving within a larger sideways channel between 1.2890 and 1.3070. The core of this channel is contained within narrower band 1.2940-1.3000 where 1.3000 is the key level – and the GBP has just stepped over it. Now, you may take the upside of the larger channel of 1.3070 as the primary target for bulls.
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The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
The Federal Open Market Committee (a department of the Federal Reserve) will post its statement and an update on the interest rate on January 27 at 21:00 MT time