GBP/USD Outlook Ahead of BoE Rate Decision, US Jobless Claims

GBP/USD Outlook Ahead of BoE Rate Decision, US Jobless Claims

The Australian and New Zealand Dollars plunged over one percent against the Greenback along with US equity futures early into Asias Wednesday trading session. The catalyst appeared to be concern about delays regarding the implementation of a $2 trillion fiscal plan from the government overseeing the largest economy in the world. Sentiment in Asia was also soured by dismal advanced GDP data from Singapore.To get more news about AMP, you can visit wikifx news official website.   BANK OF ENGLAND RATE DECISION, BOND PURCHASING PROGRAM   The British Pound may fall following the Bank of England rate decision and announcement regarding the central banks bond-purchasing program. The benchmark lending rate is anticipated to stay 0.10 percent with expectations purchases will increase to 635 billion GBP, up from the prior 435 billion. This liquidity-emergency mechanism is known as the Contingent Term Repo Facility or CTRF for short.   The central bank will be conducting another operation of this kind on April 2. Even if interest rates remain unchanged, the size of the CTRF and commentary from officials may pressure the GBP. This comes despite massive stimulus measures announced by Chancellor of the Exchequer Rishi Sunak which involve paying 80 percent of wages to those unable to work during the coronavirus pandemic.   US JOBLESS CLAIMS: WHAT TO EXPECT   The US Dollar may recover some of its losses vs the British Pound and its G10 counterparts if US jobless claims data – with estimates for March at 1,640,000 – spurs haven demand and pushes the Greenback higher. However, risk aversion from the employment data may be offset by the ratification of a $2 trillion fiscal stimulus plan if both the Senate and House are able to find common ground.   GBP/USD TECHNICAL ANALYSIS   GBP/USD may shy away from testing former support-turned-resistance at 1.1959 and may even plunge below the 1985 swing-low at 1.4512. The upcoming fundamental factors may be the necessary inputs to catalyze an aggressive selloff in GBP/USD after the pair got some respite from a weakened US Dollar. However, that dynamic may quickly shift and push Cable into uncharted territory.