GBP/USD: A rollercoaster

Brits are forbidden from going to theme parks as part of the lockdown measures but GBP/USD is certainly a rollercoaster, in the opinion of FXStreet’s analyst Yohay Elam.

Key quotes

“The US Senate finally passed the $2 billion stimulus bill after intense talks. The package now goes to the House of Representatives and maybe amended before it reaches President Donald Trump's desk for signature. Failure to pass the bill may boost the safe-haven dollar.” 

“Chancellor of the Exchequer Rishi Sunak is readying more steps, focusing now on small businesses. The government has the backing of the central bank, which is ready to buy more bonds. The BoE convenes later in the day for its scheduled meeting.”

“Thirty minutes after the BoE's decision, the focus will be on US weekly Unemployment Claims. The high-frequency figure is now projected to leap to anywhere between one and four million. A relatively low figure may boost GBP/USD while a surge may send investors to the safety of the greenback.”