GBP/USD: Bought the rumour and is selling the fact

GBP/USD has been extending its recovery as markets are inspired by the US stimulus deal. Coronavirus-related developments are set to shape investors' mood, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The main upside driver for cable is US dollar weakness stemming from the US Senate's announcement of a multi-trillion fiscal stimulus deal.” 

“Markets may also ‘sell the fact’ after the deal is done. If that happens, the safe-haven greenback may be in demand once again.”

“UK Consumer Price Index stood came out at 1.7% in February, as expected. Investors are ignoring figures that predate the crisis and were also confused by fresher ones.”

“US Durable Goods Orders for February are on the Agenda later in the day, but markets are already focused on Thursday's events.”