Pound Failed to Gain Ground Against the U.S. Dollar

The British pound is one of the most recognizable currencies in the world. Interestingly, the pound continues to lose ground against the U.S. dollar. Importantly, GBP/USD is trying to settle below the support at 1.3710 while the U.S. dollar continues to strengthen its position against a broad basket of currencies.

People should keep in mind that the U.S. Dollar Index was able to settle above the resistance at 92.25. Moreover, it is moving towards the next resistance level at 92.50. Moreover, if the U.S. Dollar Index manages to settle above this level, it will obtain additional momentum. It will be bearish for GBP/USD.

As a reminder, the U.K. provided the Claimant Count Change report. This report indicated that the number of claiming unemployment benefits grew by 86,600 in February.

Australian dollar vs. the U.S. dollar

The British pound is not the only currency that is struggling to strengthen its position against the U.S. dollar. Interestingly, the Australian dollar continues to lose ground against the greenback.

On  March 24, Australia provided fresh readings of Manufacturing PMI and Services PMI reports for March. It is worth noting that manufacturing PMI increased from 56.9 in February to 57 in March and this result surpassed expectations. Moreover, services PMI increased from 53.4 to 56.2 compared to the analyst forecast of 54. It is worth mentioning that the country’s success in virus containment continuously provides support to Australia’s economy.

However, the pandemic is a very serious issue and Australia’s economy is not immune to the pandemic. Unfortunately, countries all over the world are struggling to deal with issues caused by the pandemic.

As a reminder, the Australian dollar found itself under pressure in recent trading sessions together with other commodity-related currencies. Importantly, commodity markets moved lower and this factor affected commodity-related currencies.