GBP/USD: No reasons for sterling to spring back up

While Brits are enjoying their spring bank holiday – albeit under lockdown restrictions – sterling may continue suffering, according to FXStreet’s analysts Yohay Elam. Technicals point down.

Key quotes

“Speculation remains rife that the BoE will set sub-zero borrowing costs. The latest BoE member was David Ramsden, who opened the door to such a move.”

“PM Johnson’s main task is managing the coronavirus crisis. He previously announced that further easing of the shuttering will be considered in June, which is a week from now. While COVID-19 statistics continue improving, they remain stubbornly high and may require a gradual process.”

“Negotiators will try to advance toward an accord on future EU-UK relations. Brussels wants Britain to adhere to its regulations in return for easy access to the bloc’s single market – a demand London refuses. That is the main sticking point, and there is no evidence that it has changed.”

“Weekend protests in Hong Kong kept tensions high. The US and China also continue clashing about the origins of coronavirus, activities of Chinese firms in America, Taiwan, and more. The safe-haven dollar is in demand.”