GBP/USD: Ugly coronavirus stats to worsen sterling health

GBP/USD has been pushed to fresh three-week lows, around the 1.2360 level, from insufficient BoE support and coronavirus concerns which are set to remain a key driver for the pound. Brexit talks and a bunch of US macroeconomic data on Thursday are also eyed, FXStreet’s analyst Yohay Elam informs.

Key quotes 

“Brexit talks resume only on June 29, so that should provide a potential break from the saga, yet any significant statement by Johnson or others could rock the pound.” 

“UK coronavirus statistics remain central to the pound, as they indicate the path forward for the reopening – including the 14-day quarantine requirement. Investors will likely ignore figures published on Monday when the ‘weekend effect’ is most pronounced. Figures on other days and new government measures are of interest.”

“Thursday features a big bulk of events, with the final US GDP set to confirm the annualized 5% drop in the first quarter. Investors may focus on the more recent Durable Goods Orders numbers for May, which are projected to be mixed. The nondefense ex-aircraft figure – ‘core of the core’ – will likely have a considerable effect on markets. Weekly jobless claims complete Thursday's trio, with a greater focus on continuing claims for the week ending on June 12. A figure above 20 million would be disappointing.”