GBP/USD: Ready to seize the US dollar weakness

GBP/USD has been hesitant to rise as the UK lockdown is set to extend. The focus shifts to top-tier US events, GDP and the Fed decision, FXStreet’s analyst Yohay Elam reports.

Key quotes

“UK coronavirus statistics jumped after being depressed due to the ‘weekend effect.’ Nevertheless, the trend is to the downside, similar to other western countries.”

“GBP/USD is set to react to top-tier US events. GDP is set to squeeze by 4% annualized in the first quarter, shedding light on the damage that coronavirus has inflicted on the economy. The second quarter may see a plunge of over 30%. However, the economy may rebound in the third quarter.”

“The Federal Reserve's first scheduled decision since January will likely result in no new policy measures as the world's most powerful central bank was active in March and April.” 

“Jerome Powell will address the press and will likely repeat his commitment to do whatever is necessary. New projections for growth, employment, inflation, and interest rates, which will likely remain depressed for years, will be closely watched.”