GBP/USD: Pressured below 1.2500, focus on UK PM Johnson’s coronavirus briefing
- GBP/USD bears the burden of US dollar pullback.
- US President Trump said trade with China “upset very badly” by the coronavirus.
- UK PM Johnson will chair the first daily briefing after returning to the office.
- US Jobless Claims, virus updates will be important as well.
GBP/USD extends pullback moves from 1.2430 to currently near 1.2465, down 0.05% on a day, while heading into the London open on Thursday. The Cable earlier weighed down by the US dollar’s pullback recovery but seems to recover the losses ahead of the coronavirus briefings by the UK PM Boris Johnson.
Despite returning to the office on Monday, the Tory leader failed to chair any daily coronavirus briefings. The British PM Johnson’s little presence on Wednesday could be attributed to the news of his fiancée giving birth to a baby boy. However, the UK Leader did discuss proceedings to combat the crisis with the opposition Labour Party leader Keir Starmer.
The ruling Tory party has been under immense pressure with the latest virus fatalities suggesting the UK as having the second-highest death toll in Europe. Also on the criticism was the policymakers’ performance on securing the personal protective equipment (PPE) as well as falling short of 100,000 targets of daily tests. Even so, the government still claims to be on the top of performance with a coronavirus contact-tracing app that alerts users when they have come into contact with people infected with COVID-19, per the CNBC.
Elsewhere, the UK Metro quoted Foreign Secretary Dominic Raab saying that the UK must ‘double down’ and secure a Brexit deal by the end of the year to give businesses the best chance of ‘bouncing back’ from the coronavirus pandemic.
It should also be noted that the US President Donald Trump’s signals for a fresh US-China trade war triggered the pair’s pullback during the early-Asia. Previously, the Fed’s dovish halt and positive updates on the virus cure have weighed on the greenback.
Moving on, UK PM will chair a cabinet meeting later and then lead the daily coronavirus briefing for the first time since his return to work, as per the BBC. The news mentions that No 10 said the PM, whose fiancee gave birth on Wednesday, will update the UK on the "fight against this disease and the steps we are taking to defeat it". Though, the Tory leader isn’t expected to provide any hints on when the lockdown will be eased amid complex concerns suggesting a few more days (or weeks) of social distancing required.
On the other hand, US weekly Jobless Claims, expected 3,500K versus 4,427K prior, will be the key to watch together with observing an indirect impact of the ECB meeting.
Technical analysis
Weekly support line around 1.2365 becomes the immediate level to watch during the further weakness while 1.2520 acts as nearby resistance.