GBP/USD: Worsening coronavirus figures point down

GBP/USD has been trading in a narrower range after several weeks of extreme volatility, and the cable next move may be to the downside given the worsening situation, in the opinion of FXStreet’s analyst Yohay Elam.

Key quotes

“The UK’s death toll has surged by 31% to 2,352, and the total number of cases nears 30,000 while the situation is far from improving in the US, which has over 200,000 infections and more than 4,000 mortalities.”

“ADP’s private-sector jobs report showed a modest loss of 27,000 jobs, yet this is due to the cut-off date, March 12. Weekly jobless claims are forecast to show an increase from 3.283 million to 3.5 million. Goldman Sachs foresees a leap to 5.25 million.”

“The relative calm is allowing the pound to recover as the safe-haven dollar is seeing diminishing demand. However, investors may return to their gloom, sending stocks lower and the greenback to fresh gains.”