03.04.2020 GBP/USD Daily Analysis

03.04.2020 GBP/USD Daily Analysis

GBP/USD is trading at $1.2353 as the USD strengthens due to a jump in Crude oil (WTI) prices. US President Donald Trump hinted at a possible resolution to the Russia and Saudi Arabia oil price war and that is what caused the nearly 25% jump in WTI prices. President Trump hinted this after speaking to both Russian President Vladimir V. Putin and the Saudi crown prince, Mohammed bin Salman. On Thursday, he tweeted, “Could be as high as 15 Million Barrels. Good (GREAT) news for everyone! ” Meanwhile, the US has reported a total of 245, 175 coronavirus cases and 6,059 deaths. Worldwide cases have exceeded 1, 000 000. Later today, the Non-Farm Payroll report will be released, and also the US Unemployment Rate. The US announced a record unemployment rate of 6.648 million due to Covid-19. However, the USD has shown its ability to rally even in the wake of poor economic data.  Joe Capurso,  Commonwealth Bank of Australia currency analyst said, “The U.S. labor market has more or less collapsed. The increase in the dollar because of the poor U.S. economic data reflects the dollar’s status as a counter-cyclical currency. It lifts when the global economy deteriorates, even if the deterioration in the global economy in the U.S.”