The GBP/USD pair saw some upward momentum during early Good Friday morning trading, as it saw its first daily gains in three days. This was due in part to the hawkish sentiments expressed by the Bank of England, as well as a cautious attitude towards the upcoming US Nonfarm Payrolls announcement.
BoE maintains its hawkish stance
The Bank of England has maintained its hawkish stance, as Governor Andrew Bailey expressed the belief that the economic recovery in the UK was progressing well. This sentiment was echoed by fellow policymakers, who also stated that the Bank of England could potentially tighten monetary policy sooner than initially expected. This has raised expectations that the Bank of England may be looking to raise interest rates earlier than planned.
GBP/USD affected by US Nonfarm Payrolls
While the hawkish sentiment from the Bank of England has boosted the GBP/USD pair, traders are also keeping a close eye on the US Nonfarm Payrolls report, which is due to be released later on Friday. This report is expected to provide some insights into the state of the US economy and the potential impact of the ongoing COVID-19 pandemic.
The impact of Brexit on GBP/USD
Another factor that is affecting the GBP/USD pair is the ongoing negotiations around Brexit. The UK and EU are currently in the process of negotiating a trade deal, and any progress or setbacks in these negotiations could have an impact on the value of the pound. The ongoing uncertainty around Brexit has already had a significant impact on the value of the pound, and traders will be watching closely for any developments in this area.
Conclusion
Overall, the GBP/USD pair has seen some gains on the back of hawkish sentiment from the Bank of England and cautious optimism ahead of the US Nonfarm Payrolls announcement. However, the ongoing negotiations around Brexit and the ongoing COVID-19 pandemic are also having an impact on the value of the pound, and traders will need to remain vigilant in order to stay ahead of any potential developments.
