GBP Forex Market Weakness Remains Ahead of US Data

  • Close Advisor Comments Rattle Pound
  • USD Eyes Key Figures Release
  • Markets Continue Strong Rebound

The Pound has had a difficult week with several challenges on the home front. This has clearly impacted the forex market as far as Sterling is concerned. Bombshell comments made by a former Chief Advisor to the Prime Minister have only managed to further labor the currency ahead of a busy day in the US economic calendar. Key data particularly relating to job figures, and home sales will be eyed by a Greenback that has been lacking any strength or direction in recent days. On Wall Street meanwhile, equities have found their form again and continue to bounce back on alleviation of rates and inflation concerns.

Britain Rocked as Advisor Breaks Ranks

Former key advisor and confidant to the British leader Boris Johnson has come out fighting with a number of remarks seeming to undermine the PMs capacity to lead, and handling of the COVID-19 pandemic to date. Dominic Cummings who had been hugely influential in the halls of power in London prior to his departure at the end of last year painted a vivid picture of disharmony and inability within the UK leadership, taking direct aim at Boris Johnson.

Downing Street has continually rebuffed many of the claims especially around comments made by Johnson and his handling of the COVID crisis. This dismissal though has not helped those forex trading the Pound as it continues to flounder even against a weak Dollar. The pair dropped back again yesterday with the GBP now trading close to 1.41 and looking for any possible momentum.

Jobs and Housing Data Due in the US

Forex brokers are preparing for a busy day on the US docket with plenty of data that could influence the Dollar and wider market. This includes weekly jobless figures with both new and continuing claims, as well as home sales data to be released.

The USD has managed to stay low thanks for the most part to an easing of concerns around inflationary pressure and the possibility of an early deviation by the Fed to raise interest rates. They have held firm with their policy, rates have stayed low, the bond yields have been maintained at a level, and the panic over inflation being anything more than transitory seems to have passed for now.

Markets March Forward on Positive Sentiment

Wall Street has seen an influence from the easing of worry mentioned above. It seems that many traders took the recent sell-off across the board as a buying opportunity and perhaps the moment the market needed, to continue moving forward. That is what has happened, and all the major indices are having a strong week.

With that said, the futures market traded slighting lower particularly the NASDAQ in which many of the tech names have been slower to recover from the activity of recent weeks with traders favoring more value names than growth in the current climate.

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