GBP price, news and analysis:
- Hopes that Covid-19 lockdowns will be eased in more countries are helping risk assets, including the British Pound.
- However, caution is called for ahead of Thursday’s monetary policy announcement from the Bank of England and news from the US-UK trade talks.
- The UK Society of Motor Manufacturers and Traders reported that new car sales plunged by 97% last month compared to April 2019.
GBP/USD edging higher
GBP/USD is recovering modestly after its falls earlier this month, lifted with other risk assets by hopes that more countries will follow the US, Italy, Spain and others in easing the lockdowns imposed to counter the spread of Covid-19.
GBP/USD Price Chart, Two-Hour Timeframe (April 14 – May 5, 2020)
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However, traders need to be cautious ahead of Thursday’s monetary policy decision by the Bank of England. It is not expected to move Bank Rate and may not expand its quantitative easing policy either so attention will focus on its latest economic forecasts.
These are expected to be dire, with the UK’s Society of Motor Manufacturers and Traders paving the way with data suggesting that new car sales plunged by 97% last month compared to April 2019, according to preliminary figures showing the effects of the coronavirus lockdown on the industry.
Meanwhile, the US and the UK have launched post-Brexit trade talks as both countries struggle to cope with the economic impact of the Covid-19 outbreak.
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— Written by Martin Essex, Analyst and Editor
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