The GBP USD trading pair finally gained yesterday after the US dollar struck its short-term highs on last week’s trading. The pair did not manage to break down through its support last week and is on its way to recovery.
The British pound was saved as Britain’s economy managed to avoid a recession. The UK’s economy received unexpected support from the kingdom’s television and film production industry.
Bullish GBP USD traders were relieved as the pair edged up yesterday, starting the week with promising gains. Both currencies are facing economic hindrances – the US economy is expected to slow down, and Brexit uncertainties weigh the pound.
Experts believe that the US economy will expand for the 12th consecutive year in 2020 by only 2%. Yesterday, the GBP USD trading pair was first seen going up by only 0.20% in the first half of the sessions.
The pair, later on, ramped up its gains and has gone up by 0.86% or 0.0110 points in yesterday’s trading.
The Weak vs. the Weaker
Another pair was also closely watched yesterday after the news about the Turkish central bank broke out, the lira also gained attention.
The TRY was noticed when the Turkish central bank was hailed as the world’s biggest gold buyer in the third quarter of the year. Traders were wondering what monetary policy measures will do next, aside from buying gold.
The World Gold Council said that the Turkish central bank bought approximately 71.4 tons of gold just in September, hitting its highest purchase ever. All in all, the bank now has a staggering 385.7 tons of gold in its reserve. According to experts, the purchases help the ultra-loose monetary policy of the central bank.
Despite the weak performance of the greenback on the GBP USD match up, the buck still gained against the lira.
The USD TRY trading pair went up by 0.11% or 0.0062 points on Monday’s trading session. The US dollar to Turkish lira exchange rate extended its rally from ₺5.7605 to ₺5.7946.