GBP/USD: The UK government caps the pound

The UK government’s approach to coronavirus pandemic kept a lid on the cable’s intraday uptick. Investors now look forward to the UK jobs data/US retail sales figures for some trading impetus, Haresh Menghani from FXStreet briefs.

Key quotes

“The Fed's emergency decision to slash interest rates to zero and introduce a massive bond-buying program exerted some heavy downward pressure on the US dollar.”

“The UK government's controversial measures of fighting the coronavirus pandemic turned out to be one of the key factors that weighed on the GBP and kept a lid on the early uptick.” 

“A fresh round selloff across the global equity markets extended some support to the greenback's status and further contributed to the pair's intraday pullback.”

“Market participants now look forward to the release of the UK employment report for some impetus. Later during the early North-American session, the US monthly retail sales data might further contribute towards producing some meaningful trading opportunities.”