GBP/USD: New month, new falls amid a never ending Brexit story

GBP/USD cannot complain about the lack of volatility – albeit things are becoming more complex. The first week of June consists of top-tier US publications and an even more significant role for Brexit, Yohay Elam, an analyst at FXStreet, reports.

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Key quotes

“The deadline for prolonging the Brexit implementation period beyond the year-end is here. While the UK repeated its objection to any extension, passing the June 2 deadline without optimism for an accord may weigh on the pound. Reports of progress on trade or any other topic may boost the pound.”

“Ongoing improvement in coronavirus figures is critical to further return to normal – including reopening of more shops in mid-June. Moreover, testing capacity and reports about the tracing application's ability to help contain new clusters will also come to the test and may impact the pound.” 

“The daily death toll from coronavirus has dropped below 1,000 in the US while states are reopening. The longer this lasts, the better for the market mood and for GBP/USD. However, flareups in various states – as seen in several places in the world – may trigger dollar demand.” 

“May's Nonfarm Payrolls will likely show a smaller loss of jobs, but still in the millions. The unemployment rate could leap to around 20%. Wages, that jumped in April, are set to revert to normal.”