The pound and the dollar are 2 of the leading currencies traded among forex investors. This is as traders seek to benefit from the fluctuations in the forex market. The GBP/USD pair is trading higher today by 0.1% at $1.5550. Traders have decided to buy in the pair as there is a lot of confidence in the forex market today. This is following the positive U.S. jobs data yesterday. In addition, the U.K. released optimistic manufacturing figures.
Traders have been weary in previous trading days when it comes investing in the fx market. However, the U.S. stock market rally on Thursday was a relief, as previously there was much pessimism in the financial markets. The fact is that the GBP/USD forex pair has been higher for most of the current trading week, in spite of what the leading economies release.
The good news is that there was positive manufacturing figures published from the U.K. economy on Wednesday. This has lent the pound a helping hand versus the dollar and its other main currency counterparts. This is why traders are of the view that the pound could continue making inroads into the greenback in the coming days.
We need to understand that the Federal Reserve has decided to go ahead with additional stimulus. This is set to put further downward pressure on the U.S. dollar. This is a trend which we have seen for a long time. However, it needs to be taken into account that stimulus may not boost the U.S. economy in the long run. It is possible that the GBP/USD pair will continue rising later this Friday.