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May 18 - 02:36 AM

GBP/USD - COMMENT-Sterling Trends South, As Weekend News Weighs

By Andrew M Spencer  —  May 17 - 08:30 PM

In a busy weekend for UK news, there is little reason to fight the current Sterling downtrend.
Last week's round of UK-EU Brexit negotiations ended with little progress, or optimism from the negotiators.
The EU maintain that an even regulatory playing field is an essential component of any deal, which the UK believes would diminish UK sovereignty nL8N2CX2EM.
The UK's Gove said on Sunday that there was a deal to be done, if the EU compromise.
Meanwhile the UK's 'no deal' planning committee will meet regularly nL8N2CZ08F.
The BoE's chief economist Haldane said that they are exploring all options to support the coronavirus hit UK economy, including negative rates and buying riskier assets, though BoE Governor Bailey said negative rates were unlikely on Thursday nL8N2CY0NI.
The UK budget office believes April was the low for the economy, but does not expect a V-shaped rebound, but a rather slower recovery nL8N2CZ06G.
PM Johnson is under pressure on the government's coronavirus performance nL8N2CZ07Q.
GBP/USD charts show 5, 10 & 21 daily moving averages trending lower, with Friday's close below the 1.2166 April low and range base, initially targeting 1.1885, 61.8% March-April bounce.
GBP bulls need a USD collapse to reverse the trend, which looks unlikely at this point.


gbp2 may 18 Click here

Source:
Refinitiv IFR Research/Market Commentary

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