As April draws to an end and May kicks off, the British government’s next steps regarding the shuttering of the economy will likely take center stage. In the US the all-important Fed decision is the main event, FXStreet’s analyst Yohay Elam briefs.
Key quotes
“If Johnson returns to Downing Street, that would be a boost to morale and could lift the pound. It would also help to publish and to approve an exit strategy and to provide more leadership. The removal of some uncertainty would also support the pound.”
“Brexit talks continue in the background and have yet to stir sterling. Any reports of disagreements could push the pound lower, while announcements of a breakthrough, which seem unlikely, may send investors to the pound.”
“Better relations between various US authorities would boost sentiment and push the safe-haven dollar down, while clashes would cause confusion and support the king of cash.”
“Jerome Powell, the Fed Chairman, may publish new forecasts for growth, employment, inflation, and interest rates. Gloomy forecasts mean lower rates for longer, but they may depress markets.”
Share
