GBP/USD: A three-pronged attack

GBP/USD has kicked off the week under pressure amid criticism over the UK's coronavirus management. FXStreet’s analyst Yohay Elam reports.

Key quotes

“The UK government is coming under mounting criticism for its handling of the coronavirus crisis. The news is weighing on the pound while the US dollar is edging higher as stock futures are on the rise.” 

“Brexit remains another source of uncertainty. This week negotiators are scheduled to hold intense discussions. [...] Without a deal, the UK defaults to World Health Organization terms in 2021, a scenario that markets fear.”

“Tests for antibodies would be able to identify people that have developed an immunity. However, these probes are unreliable and the length of immunity is unknown at this point. Such uncertainty implies a slower approach that supports the safe-haven dollar.”