05.03.2020 GBP/USD Daily Analysis

05.03.2020 GBP/USD Daily Analysis

  Today GBP/USD is trading at 1.2928 and is going up. The events held yesterday, ISM Manufacturing PMI and ADP Non-Farm Payroll, both had positive results which were higher than expected. The forecast for ISM Manufacturing PMI was 54.9 and the actual was 57.3 which exceeded expectations. ADP Non-Farm Payroll showed that a total of 183000 new positions had been filled in the past month in the private sector which can we used to predict the result of the government’s Non-farm Payroll to be released tomorrow. However, the bearish movement of GBP/USD was short-lived because of the downward momentum of USD from the emergency interest rate cut and a report of one more death in the US due to coronavirus. The state of California has been declared a state of emergency as a total of 11 deaths have been reported in the US due to coronavirus. The governor of the Bank of England is scheduled to speak today and investors will be watching this to know where the Bank of England stands in terms of possibly cutting interest rates. Tomorrow, being the first Friday of the month, there is the long await event, US Non-Farm Payroll which measures the change in the number of employed people in the last month. This event is used as an indicator of consumer spending, and if the result is higher than the forecast (160k), it will have a positive effect on the economy.