GBP/USD: Sterling fueled by the reopening of the UK economy

The pound is moving higher amid the PM’s announcement to gradually reopen shops in June, ignoring the Cummings scandal, FXStreet’s analysts Yohay Elam reports.

Key quotes

“Senior Downing Street adviser Dominic Cummings has no regrets for violating the lockdown he contributed to devising. PM Johnson backed his aide and some Conservatives are worried that the PM is spending too much political capital on an unelected official.” 

“Sterling is moving higher after the Boris’ message to gradually reopen shops in June. Relatively low COVID-19 statistics published on Monday also help.”

“Demand for safe-haven assets is diminishing amid new hopes for a vaccine, this time from Novavax, a Maryland-based pharma firm. Investors are shrugging off ongoing tensions between the US and China. Investors are content with the world’s largest economies’ pledge to hold up the trade agreement.”

“Further resignations of ministers may weigh on the pound, and so could another adverse twist in Sino-American relations. President Trump may tweet in the US session. Without significant developments on these fronts, traders will also watch several US housing figures, including sales of new homes, and also the Conference Board’s Consumer Confidence gauge.”