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GBP/USD has been on the back foot amid growing Sino-American tensions but preparations to lift the UK lockdown are underway and may move sterling, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The peak of the spread has already passed, as PM Boris Johnson declared. According to reports, Conservative Party donors are pressuring him to ease restrictions and also to extend the Brexit transition period. Both developments may boost the pound.”

“Talks between the EU and the UK are set to continue via video, with little progress reached so far. Michel Barnier, the EU’s Chief Negotiator, expressed frustration after the latest round of talks.” 

“Later in the day, US factory orders are of interest, yet Sino-American relations and speculation about the UK lockdown will likely be more prominent in moving cable.”