01.04.2020 GBP/USD Daily Analysis

01.04.2020 GBP/USD Daily Analysis

Today GBP/USD is trading at $1.2358 as it continues gaining strength against the GBP. The USD has been trading higher for the past three days due to high demand because of its status as the safe haven of currencies. The USD Index, which tracks the USD against six other currencies, went up by 0.3%. Although there is a demand for the USD, all the measures the Government has put in place to ease the impact on the US economy limit the gains of the USD. Another factor limiting its gains is the US Fed`s decision to broaden the ability of dozens of foreign central banks to access dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for the overnight dollar loans. Kyle Rodda, an analyst at broker IG Markets said, “The Fed clearly wants to do everything it can to ensure dollar liquidity, which puts downward pressure on the dollar. But by the same token, there is still this very structural push to buy dollars right now because liquidity is coming at an absolute premium with so much risk in the market." Later today the ADP National Employment Report will be released, this measure the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. It is released two days ahead of the government Non-Farm Payroll Report and can be used to predict the outcome of the government report.