GBP/USD: A bit of respite for the beaten pound

GBP/USD has been on the back foot amid a souring market mood and the surge in UK jobless claims. Reactions to economic data and speculation about the lockdown are set to move cable, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The UK Claimant Count Change has advanced by only 12,200 in March, far better than a leap of 172,500 projected. The news helps GBP/USD stabilize but only just.” 

“Cable is also pressured due to US dollar strength. Petrol futures are now calculated using the June contract and are back above $20, but it may drop again and send investors to the safety of the greenback.”

“The UK Parliament is back and ready to scrutinize the government. Issues regarding procuring ventilators, the supply of PPE to healthcare workers and Prime Minister Boris Johnson's involvement in the early stages of the crisis are on MPs minds.”

“Brexit negotiations continued via video and reports so far have been of a constructive mood with little detail. Michel Barnier, Chief EU Negotiator, will hold a press conference on Friday to detail progress.”

“Later in the US, housing figures are of interest with the Existing Home Sales report for March.”