On Tuesday, when the European trading session opened, the GBP/USD currency pair displayed bullish momentum. It began to run up against the 1.3400 level as the US Dollar began to show weakness. The pair recently stabilized and now found themselves back above 1.3350 looking to establish further recovery in traction after recent erratic price patterns in the fx market.
The EUR/USD had a particularly impressive session too, reclaiming the 1.1250 level in Wednesday’s session. The duo stretched their collective winning streak to three, forming an overall upward trend. This change is part of a bigger trend of the Euro strengthening in general versus the Dollar.
Speculators latched on to both of these events. Sentiment turned to the upcoming guidance from Federal Reserve officials, known as “Fedspeak.” Market participants are keenly aware that the Fed’s stance on monetary policy could further influence currency movements and investor sentiment.
At the same time, economic prospects in China are causing increasing worry after a surprise slowdown was reported in early April. Analysts say this slump is indicative of the broader economic uncertainty and trade war turmoil. These political and economic realities continue to undermine Chinese confidence. This slowdown has been accompanied by a sharp drop in investment, adding to the gloomy picture for global growth.
“China April slowdown shows the impact of economic uncertainty.” – www.fxstreet.com
GBP/USD has held surprisingly firm. The duo has recently found some renewed momentum, forcing traders to challenge the ever-important 1.3400 level. This movement is consistent with the general global trend of the US Dollar losing strength against all major currencies.