GBPJPY Daily Outlook – The US stocks climbed more than 11% on Tuesday in the best day since 1933, on signs that the Trump administration was nearing a deal on a gigantic stimulus package that could limit the economic fallout of the coronavirus pandemic.
Meanwhile, New York is getting hit hard by the novel virus, and regardless, Trump said he hopes to have the country reopened in just over two weeks, a timeline that is significantly sooner than what many public-health experts have recommended.
Could this have a further negative impact on the US economy?
Besides the Coronavirus news, on Wednesday we’ll also be looking at the UK CPI and the US durable goods orders data.
Today I’m looking at the GBP/JPY pair, which unlike GBP/USD, was supported at a key psychological level at 126 last week and it now appears to be bouncing up.
This level has acted as key support multiple times since 2016… this, combined with the fact that the UK is taking Coronavirus prevention and lockdown more seriously than the US, could help the GBP bounce off a bit more.
If the pair is able to break above 131, we could see further gains towards 135, although the signal is not yet strong.
Are you bullish or bearish on the British Pound? Head over to the comments section and let me know!
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