The pound today traded sideways against the US dollar extending its sideways trading range for the third day in a row as investors took a break following its recent massive rally. The GBP/USD currency pair rangebound trading action was also affected by the surge in UK coronavirus deaths as deaths jumped 31% to 563, hitting a cumulative total of 2,352.
The GBP/USD currency pair today traded with a range marked by a low of 1.2331 and a high of 1.2437 and was within this range at the time of writing.
The currency pair traded sideways today after its recent 1,000 pip rally from a March low of 1.1408, which was last seen in 1985. The cable has been stuck in a range for the past three days as investors took profits before deciding the pound’s next move. The release of the upbeat Markit/CIPS UK manufacturing PMI for March had a positive impact on the pair. According to Markit Economics, the UK’s manufacturing PMI was 47.8 versus the expected 47.0 print. However, the country continues to fight the coronavirus pandemic even as Boris Johnson, the Prime Minister, is in self-quarantine having tested positive for the virus.
A rally by the greenback earlier today also kept a lid on the pair as the US Dollar Index hit a high of 99.84. The upbeat US ISM Manufacturing PMI released in the American session also drove the pair lower.
The currency pair’s future performance is likely to be affected by geopolitical headlines and tomorrow’s US jobless claims data.
The GBP/USD currency pair was trading at 1.2378 as at 19:30 GMT having dropped from a high of 1.2437. The GBP/JPY currency pair was trading at 132.52 having fallen from a high of 133.59.
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