pound-sterling-gbp-coin - GBP
  • GBP/USD is edging lower in early European but trend higher remains intact and further gains are likely.
  • USD weakens owing to a dovish Fed, the prospect of more free money and a benign inflation outlook.


GBP/USD trades mildly lower in early trade but the bullish trend remains and further upside is likely.

US developments are driving the pair. The Federal Reserve remains dovish and could inject more money into the economy. Furthermore, US inflation is still lacklustre so there is little prospect of the Fed having to change its stance.

GBP has been firm since last September. Now a no no-deal Brexit has been avoided UK continues to press ahead with its coronavirus vaccine program.