GBP/USD: The pound retreats as Boris thinks how to ease

GBP/USD has succumbed to dollar strength and retreated from the highs. Loosening restrictions and terrible economic statistics are in the spotlight, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The UK reported 288 COVID-19 deaths on Monday, the lowest since March, yet this sharp fall levels more than double that statistics can be attributed to the ‘weekend effect.’ Nevertheless, the trend remains encouraging.” 

“Markets would like to see an increase in economic activity, yet are also aware of the risks of a second wave – devastating to consumer and business confidence. Markit's final Services Purchasing Managers' Index for April came out at 13.4 – above the initial read but pointing to a deep depression.” 

“The US dollar has been gaining strength as the market mood is souring once again. The ISM Non-Manufacturing PMI for April is projected to plunge, reflecting the paralysis of America's services sector.”