06.03.2020 GBP/USD Daily Analysis

06.03.2020 GBP/USD Daily Analysis

  Today GBP/USD is trading at $1.3014, the highest it`s been in 3 weeks as Bank of England says they may cut interest rates later this month although this is not a done deal. The incoming BoE governor told a Treasury Select Committee that he is waiting to see more evidence of how badly the coronavirus has affected the economy before he casts his vote on whether or not they should cut interest rates. Today there are two major US events that investors usually look forward to, Non-Farm Payrolls and Unemployment Rates. Non-Farm Payrolls measures the change in the number of people employed in the last month. Basically this event measures the number of new jobs and if more people are getting jobs then it means more consumer spending which is good for the economy. The unemployment rate measures the percentage of the total workforce that is unemployed and actively seeking employment during the previous month. For this to have a positive effect on the USD, we expect a lower than expected percentage for Unemployment Rate and a higher than expected number for Non-Farm Payrolls. Although analysts have said this might be the least relevant Non-Farm Payrolls in recent history as investors are focusing on coronavirus news as the total number of infections nears 100 000.