The British pound was narrowly higher against the US dollar on Tuesday.

The Federal Reserve opening up a new repo facility for foreign central banks, a US GDP forecast from Goldman Sachs much worse than anything during the Great Recession and a rising number of US coronavirus cases weighted on the dollar and help the pound rebound from earlier weakness.

Pound versus US dollar was up by 23 pips (+0.25%) to 1.2447 with a daily range of 1.2255 to 1.2454 as of 4pm GMT.

After a sharp dip below 1.23 in early trading, the GBP/USD powered back through 1.24 then 1.245 before coming short of a rise to 1.25.

British pound helped by consumer confidence data

Some relative resilience from UK consumers supported Sterling. GfK consumer confidence for March came in at -9 versus an expected -15. Commenting on the data GfK said: “While we have a long way to drop before we match the devastating numbers seen in July 2008 when the Overall Index Score crashed to -39 points, lockdown Britain can only expect further deterioration”.

Dollar weakened by new Repo facility & Goldman forecast

The new FIMA Repo (short for repurchase) Facility is another attempt by the Federal Reserve to ease dollar funding stresses across the globe that indirectly caused a sharp spike in the value of the dollar in March. At the same time the Fed is aiming to stop ‘disorderly’ selling in US Treasury markets by offering to exchange Treasuries for US dollars, which the Fed will then repurchase at a later date.

In describing the new measures the Fed said: “This facility should help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market.”

While the new liquidity measures were devaluing the dollar directly, there are also some fundamental problems coming for the United States Goldman Sachs cuts its second quarter US growth forecast to -34% y/y. The investment bank expects things to pickup in June if lockdown and social distancing measures do the trick at keeping the number of infections at bay. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.