GBP/USD: All factors play against the pound

Yohay Elam, an analyst at FXStreet, explains four reasons to favor the downside on the GBP/USD pair.

Key quotes

“It seems that the UK government is moving slowly and that a clear plan is still lacking, adding to uncertainty and weighing on sterling.”

“Talks on future UK-EU relations continue and no advances have been reported. [...] Fears that the UK may default to World Trade Organization terms by year-end weigh on sterling.”

“While President Donald Trump has been urging the economy to reopen, White House documents have shown spikes in several cities. [...] The safe-haven dollar may gain on a worsening market mood. US inflation figures for April may provide insights on the economy.”

“While the Chinese press has suggested the Phase One trade deal maybe reopened, Trump dismissed such an option. However, his previous threats to cancel the deal also support the greenback.”