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A leap in UK jobless claims and rising speculation about negative rates may weigh on the pound, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The Claimant Count Change figure for April showed a leap of 856,500 – far worse than expected. Sterling initially shrugged that off, but the mood may change.”

“The pound may come under pressure by rising speculation about negative interest rates. Silvana Tenreyro, an external member of the BoE’s Monetary Policy Committee seems ready to adopt the policy and said it was successful in the eurozone.” 

“Brexit negotiations hit the wall on Friday and Britain seems to be preparing for a no-trade-deal Brexit, announcing a new tariff regime for 2021 – when the transition period expires.”