GBP/USD has fallen due to a sour market mood and high UK coronavirus cases. The reasons for the cable’s fall will likely continue pushing it lower, according to NDDFX’s analyst Yohay Elam.
“The collapse in oil prices continues to weigh on equities and boosts the safe-haven greenback.”
“The mood in the UK is weighing on the pound while it has been ignoring economic figures. CPI decelerated to 1.5% in March, showing stability despite the crisis. Jobless claims rose by only 12,200 last month, better than expected.”
“Brexit talks continue and may produce headlines that may move the pound. However, negotiations have been quiet and may stay so until the end of the week. Chief EU Negotiator Michel Barnier is scheduled to hold a press conference on Friday.”
“UK and US COVID-19 statistics are of interest later on. Frictions between the White House and state governors over testing and other steps are prevalent.”